Bitcoin, created to disrupt the banking industry has been faced with scaling issues sinces it’s creation. Temporary solutions such as the lighting network have surfaced to provide instant like transactions to be used for micro-transactions as it is not truly secure. Leaving a need for large transactions and micro-transactions alike to be conducted in an instant like manner while being secure. Scroda being fully aware of the problem affecting all cryptocurrency users who have decided to unbank their wallets, has found the solution to implement zero-confirmation transactions through the use of relay chains.
Scaling issues present in BitcoinWith Bitcoin only processing an average of 8 transactions per second, a major obstacle preventing it from becoming mainstream for daily consumer use. In which stands true for the majority of blockchains when processing transactions on-chain. Due to such congestions huge drawbacks are seen such as an increase in transaction fees and a long processing time are seen when transacting with Bitcoin.
Flaws found in temporary solution such as the Lighting NetworkOne Alternative that has been proposed is the Lighting Network in which works as a second layer on top of Bitcoin, where transactions are processed off-chain. When conducting transactions off-chain one moves from being able to conduct trustless transactions on-chain to conducting trusted transactions off-chain as one would have to trust that both parties agree to each condition accordingly, or that both parties stay online during the transactions as one party could run off with the funds of the disconnected user who is now not able to communicate or agree to any transactions. Due to such concerns users who transact on Lighting Networks only conduct micro transactions to minimize the amount of funds they risk of being stolen.
Why Zero-Confirmation Transactions weren’t achievableBitcoin was designed since conception to reach consensus on a block to block. Miners utilize a protocol known as Proof of Work in which the winning miner is chosen to upload their block. A downside being is that every miner on the network constructs a unique block with transactions that they choose to include, thus leaving the network open to many attacks vectors such as stealth mining and reversal of transactions through a 51% attack.
Bringing Zero-Confirmation Transactions to life through Relay Chains Scroda has solved the solution to bring instant-like transactions on-chain with security still in mind. Having taking note of the risk associated with verifying transactions on a block to block basis, Scroda decided to take use of relay-chains in order to verify transactions on a transaction to transaction basis. In doing so consensus on the blockchain is able to be reached before a block is uploaded. Ensuring that each transaction broadcasted to the network and that is true will have the guarantee of being uploaded to the blockchain. From having such security in place a receiver can be assured that they will rightfully receive the funds sent to them before the transaction has been permanently placed on a block in which is to reside on the main-chain.
Many benefits are obtained for confirming transactions on a transaction to transaction basis such as the reversal of transactions through a 51% attack.
Making cryptocurrency mainstream through zero-confirmation transactionsDue to the ease and security provided by zero-confirmation transactions, users would be able to see cryptocurrency become mainstream in daily consumer use. Users would be able to securely purchase items such as a TV, Furniture, Computer, Diapers, Cribs and more in the time it takes to complete a handshake. Giving benefits to instant-like transactions to both micro and large payments.
Please let us know your thoughts below! Would you conduct a large transaction on a lighting network?
https://medium.com/@scroda/scroda-solves-the-puzzle-to-concept-zero-confirmation-transactions-28ed8bfd06ba
