If you are untouched with Bitcoin educational news, then you must have missed about the Bitcoin Cash community have been talking about acceptance of the zero-confirmation transaction by merchants. Now, what do you understand by this term? Does it give you any idea about what it is indicating to? Well, if you are new to this cryptocurrency world, then it is difficult for you to know about this term. So let us have an understanding of it and what makes it so acceptable by the Bitcoin community.
Introducing Zero Confirmation Transactions?
Zero confirmation transactions are transactions that are visible in the network but have not been portrayed in the blockchain. The reason for its acceptance by the people is because of its speedy way of making payment which is good for a customer as well as for merchant. But the more it seems to be an interesting topic, at the same time it also falls under controversy due to approach by some other people. According to them, Zero confirmation transactions are very unsafe because of double-spending. They have this opinion because there have been cases of double spending in networks of Bitcoin Core as well as the popular hard fork, Bitcoin Cash.
But beyond these figures, the use of zero-confirmation transactions is still considered as the base for wider acceptance of cryptocurrency. There have been suggested solutions for the double-spending issue of zero confirmation. In July 2010, Satoshi Nakamoto, the well-known founder of a famous crypto coin, Bitcoin penned his thoughts in a discussion on Bitcointalk.org website. The Bitcoin founder emphasized his point on the acceptance of zero-confirmation. Satoshi gave details about how payment processing firms must initiate in the speedy distribution of transactions with satisfactory checking in lesser seconds.
If you follow Bitcoin news today, then you must be knowing about the BCH accepting merchants are keen to welcome the concept of zero-confirmation transactions for some time ago. Now the others that are joining the list are Mini-POS, Bitasia Exchange, Satoshi Dice, Keys4coins, and others. Moreover, the topic of zero-confirmation transactions has grabbed the attention of Bitcoin developers. They expressed their concern to make zero confirmations safer on the network through various methods of signalling.
There are two proposals regarding protocol developments to strengthen the zero-confirmation transactions use on the chain of Bitcoin Cash. ‘’Double Spend Alerts’’ was a proposal penned by Chris Pacia, the developer of the Openbazaar. It is a network message of Bitcoin Cash that notifies nodes during the occurrence of double spending on a transaction that is not confirmed. According to Pacia, all types of double spending cannot be prevented by observation. He furthers adds about the need for advancement in the technical field.
The above ideas and concepts have prompted supporters of Bitcoin Cash to give thumbs up to them, as they would help prevent and notify the participants of a network of upcoming double-spending. The concept of zero-confirmation transactions has convinced many merchants and businesses as it would benefit in lessening the risk of double-spending. In 2010, Satoshi Nakamoto stated about the threat of double-spending on the network of Bitcoin, would be lesser than cheating that is possible with credit cards. However, it depends upon the decision of the merchant whether to accept payments instantly or to keep patience for the confirmation on the blockchain.