Coinify Announces Support of Bitcoin XT for Scalability of Bitcoin Payments
Coinify, the largest European blockchain payment service, today announced support for increasing the network’s transaction bandwidth using the Bitcoin XT proposal.
The inventor of Bitcoin envisioned it as a “peer-to-peer version of electronic cash” to “allow online payments”(source: https://bitcoin.org/bitcoin.pdf). Bitcoin XT supports this vision by allowing the network to scale to significant volumes, enabling accelerated innovation in payments and finance.
In the past 3 years, the amount of Bitcoin transactions per day have increased by 150% (2.5x) per year. If the network continues to grow at the same rate, Bitcoin will in 8 years process the same amount of transactions as the VISA network. This staggering growth means that we are now nearing the artificially imposed limit of about 7 transactions per second to be included in Bitcoin blocks. Blocks are groups of verified transactions. Their size limit was originally put in place by Bitcoin’s inventor, Satoshi Nakamoto, to prevent spam transactions from taking up too much space. But he also intended for the limit to be lifted as the amount of Bitcoin transactions grew, which Coinify supports.
In addition to increased transaction volumes, Bitcoin XT further extends the transparency of the Bitcoin network, which is already the most transparent payment system in the world. This is achieved by deprioritizing Bitcoin nodes running on the Tor network. By preferring regular open nodes, Bitcoin XT also increases the network’s resilience towards denial of service attacks attempting to halt transactions as these often originate from the Tor network.“Coinify supports the deprioritization of Tor nodes which supports our bank grade anti-money laundering compliance procedures,” said Christian Visti Larsen, Coinify CFO & Head of Strategy.
The Bitcoin network is currently voting on which path to choose through its built-in consensus mechanism. Coinify first and foremost supports Bitcoin XT as the most visionary solution for transparency and scalability. However, if Bitcoin XT fails to gain widespread support Coinify will also back the alternative implementation of an increased block size limit as proposed in BIP 100. “We see Bitcoin XT as the best solution for ensuring the future scalability of the Bitcoin network,” said Hamed Sattari, Coinify CTO.
About Coinify
Coinify drives mainstream adoption of blockchain payments for merchants and consumers. 10,000 merchants benefit from Coinify’s Payment Service (PSP) enabling free, instant settlements in a fraud free and chargeback free payment environment, while consumers get access to secure one-click payments that reveal no abusable account information. Coinify is backed by a multi-million capital injection from SEED Capital (funded by the Danish Government) and Accelerace, and is the leading European blockchain payments provider.
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