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Title: Is this what's called a sidechain? Post by: twister on January 19, 2016, 03:42:14 PM BitGo Launches 'Instant' Bitcoin Transaction Tool (http://www.coindesk.com/bitgo-instant-bitcoin-transaction-tool/?platform=hootsuite)
Bitcoin security firm BitGo has launched a new service that aims to allow clients to accept bitcoin transactions prior to their official confirmation on the blockchain. Called BitGo Instant, the offering aims to allow users to accept transactions more quickly, while guarding against the possibility that funds could be 'double spent' or otherwise altered before they settle against the bitcoin ledger. Title: Re: Is this what's called a sidechain? Post by: shorena on January 19, 2016, 03:52:12 PM Sadly no information on how it works, but a generic "multi sig works like this" picture. Does not look like a sidechain.
Title: Re: Is this what's called a sidechain? Post by: AgentofCoin on January 19, 2016, 04:03:46 PM The article doesn't seem to explain how the system actually works.
From my simple understanding, it is not a sidechain, but an off-chain "insured" settlement partnership. It is like a private ledger between the partners and BitGo has agreed to "check" and "guarantee" the transfers. Title: Re: Is this what's called a sidechain? Post by: NorrisK on January 19, 2016, 04:07:15 PM Looks like people have a bitgo wallet to use this service. This way, bitgo knows the funds are already there. There is no risk for them to do this and the clients get their coins.
It can be instant, because no bitcoins are really moved over the blockchain in the progress. Title: Re: Is this what's called a sidechain? Post by: Amph on January 19, 2016, 04:12:47 PM to me it appear more as a offchain service like bitpay, nothing to do with sidechain, this is what i grasp without proper info..
Title: Re: Is this what's called a sidechain? Post by: franky1 on January 19, 2016, 04:23:13 PM its a offchain transmission that emulates the onchain transmission..
because they own the keys, they authorized it to go to the destination onchain so they know it will get there, so they are happy to credit the recipient offchain.. because bitgo use multisig, the sender cannot send the funds elsewhere afterwards.. the benefit of it is that people cant try sending the same tx 1000 times in 3 seconds.. as bitgo will only sign the first transaction and only push that first transaction onto the network, allowing bitgo to trust the funds will get to where it suppose to.. and able to credit the recipient before its arrived. because they are the ultimate signer of the tx imagine it like you already deposited funds into your bitgo account.. which is a multisig authorising bitgo to manage transactions. and you want to send funds to bitstamp bitstamp show a deposit address that is also a multisig managed by bitgo when you send funds from within bitgo 2 things happen 1. bitgo credits bitstamp's bitgo account (sql database) with the funds. and simultaneously 2. send the real transaction via the blockchain.. in short bitgo have sole control of your funds Title: Re: Is this what's called a sidechain? Post by: shorena on January 19, 2016, 06:15:38 PM -snip- in short bitgo have sole control of your funds Thats not how I understood it, but based on the little information the article provided we might both be wrong. |