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In PoW chains 10 second confirmations are a bug, not a feature. If Bitcoin's confirmation times were 10 seconds, you would have 1/60th the amount of hashing pow
by brighton36 12y ago
In PoW chains 10 second confirmations are a bug, not a feature. If Bitcoin's confirmation times were 10 seconds, you would have 1/60th the amount of hashing power/energy securing a block to the chain, which would be trivial to compromise. The solution to instant confirmations are in the form of 'latency insurance', underwritten by a trusted provider. This is implemented in Bitcoin via BIP70. It will provide 'instant' transactions.
- maxerickson 12y agoSo are those trusted providers going to be cheaper than Visa? Not just cheaper than what Visa charges merchants today, cheaper than what Visa can charge and still make money.
- brighton36 12y agoYes. Probably they will be free. Bitpay offers BIP70 for free to its merchants.
- maxerickson 12y agoSo that means they build the cost into their pricing, right?
- brighton36 12y agoYes. If you want a more exact number, it's probable that the charges will be significantly less than typical miner tips. It may even be absorbed by miners in order to give the miner a better lead-time on entries in the mempool.