Here it is said:
“Challenges include transmitting a item which requires at least ten minutes to confirm, when done conventionally, whereas the other item (safecoin) is instantaneous.”
I think this problem is solved if SAFEx, also starts using Bitgo instant
I saw that bitgo instant, though we’re relying on a key manager: bitgo.
Not sure if this is a solution. First there were problems with transaction maleability, likely something will come up with a Bitgo Instant. We shall see
There is another way how we can make bitcoin transactions instant: simply change the password of a bitcoin privatekey on the bitcoin network.
Obviously this has a few disadvantages:
- You would only have “minted coins”
- You would need a password
- Password needs to be changed at every transaction
- SAFEx would need to communicate & make changes on the bitcoin network (if at all possible)
How to do this, instant transaction with “real” bitcoins?
As some of us may know, you can import privatekeys in wallets like omniwallet. Well those privatekeys can also have a password on the bitcoin client. If you enable the password, without the password the privatekey alone won’t enable you to send the coins. So this basically means that you have a “minted coin”.
The process of sending a coin would work like this:
- Import the privatekey into SAFEx
- Send the privatekey to another party
- When you send the privatekey it gets a password from a service like (https://www.grc.com/passwords.htm), the receiver will get a privatekey + password as a result of your transaction
- SAFEx communicates the password to the bitcoin network, so the sender can’t access the coins through the privatekey only.
= If the receiver would like to send their coins again, SAFEx communicates their privatekey + password to the bitcoin network and change only the old password to a new password.
The scenario above is how you can move a bitcoin from one user to another without any move on the bitcoin network, besides from the password changing.
I’m constantly reading it that it takes hours/days for bitcoin transactions to go through
If SAFEx can enable people to instantly send bitcoins to each other on the SAFE Network, it will be a reason to use it more than the bitcoin network itself. Unfortunately it will only be minted bitcoins, but this could be solved by giving SEC or SAFEcoins as change.
For instance Alice has “1 minted bitcoin” and wants to send Bob 0.75 bitcoin. If Alice can send Bob that “1 minted bitcoin” and the SAFEx wallet can, ask Bob to send Alice 0.25 bitcoin as responce to that, translated in SEC, SAFEcoin or maybe Tether then the problem is solved.
Obviously in this scenario Bob would need to have change in his wallet for the transaction to take place. What if he doesn’t? I’m to lazy to think about that
Another thing is people should be educated how to extract their bitcoin privatekey and they can’t make use of this if they got for instance a Coinbase account.
But there are more advantages:
- People are sending “real” bitcoins
- People will have free & instant transactions (Hmmmmm maybe it can even be used for high frequency trading)
- Users are in the protected SAFE Network environment
- It might give SEC & SAFEcoin a good use case
- It sure as hell is going to make the SAFE Network and SAFEx popular among the bitcoiners