Instead of having online merchants for bitcoin transactions to be verified, payments processor Bitnet introduced its instant approval tool that can reduce delays. Merchants who have integrated their online shop platforms with Bitnet can be able to receive bitcoin payments in seconds instead of waiting a long while for confirmation through the bitcoin network.
The time it takes for bitcoin transactions to go through has been much longer these days, thanks to a surge in volumes and the current block size limit. There has been a longstanding debate to increase the maximum size of a block, but developers and industry leaders can’t quite agree on what limit to set.
Bitcoin Transactions Approval
The instant approval tool works by calculating the probability that the bitcoin transactions will be approved, thereby limiting the risk on Bitnet itself. The company has already partnered with BlockCypher, which is a blockchain technology firm that conducts optimization, and carries out its own risk management procedures.
In particular, its calculation takes into account whether the consumer has included fees in the transaction and noting how quickly it is being propagated through the bitcoin network. According to Akif Khan, chief commercial officer at Bitnet, bitcoin transactions that don’t include a miner’s fee is unlikely to be verified on the blockchain since there would be no incentive for miners to confirm it.
“Most transactions propagate across the bitcoin network with predictable speed, if this is not the case it means that the transaction is being rejected by some peers or nodes. This rejection is typically the result of the peer believing that the transaction is non-standard,” explained Khan.
“Whatever the reason, when a transaction is propagating more slowly, it increases the chance that a double-spend transaction could be present in the network and reach miners before the slowly propagating original transaction reaches them,” he added.