Sunday, July 2, 2017

Why not collect and collate bitcoin addresses?

I am not the bitcoin expert. I can suggest a company that takes all bitcoin payments in the micro category, purchases for a few dollars or less. The company, Small Bill Clearing, operates on a side chain and just takes all the merchant bitcoin receipts and swaps them for a discount with SBC Btc.

The merchants then have Btc from a major house and can block chain them in one transfer, or keep it on account at SBC. Small Bill Clearing orders the small receipts by bitcoin address and block chains on that basis when rates are low.

The strategy in all these intermediate banking solutions is to aggregate Btc usage onto fewer side chains and close the loops before calling the block chain.  They all assume mostly trusted parties.  In the case of Small Bill Clearing, we would accept a few points of defaults and  another few points of ledger fee expenses.

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