Sunday, June 17, 2018

The market in bitcoin shardng

The idea of sharding is to partition the transactions to minimize the calls to  blockchain.

As a business, this means Bitcoin card, a virtual credit card.  The business wants to aggregate small retail shoppers, then take the risk of aggregating transactions up for the month, resolving internal loops then batching them for a single call to blockchain.

You value added will be prequals, picking known good shoppers and giving them lower transaction fees. That also means offering an S&L opportunity, just like a full service credit card.

The business bears a measureable risk, covers probable losses with interest charges. The business will chase scofflaws.

 From the shoppers point of view, the business is a trusted miner, maybe with some external insurance even.  The business will run a factional reserve risk, a plot by shoppers could run the business. otherwise, it works fine, great idea, partition by wallet address on a congestion priced entry and exit system, just like your major credit cards.

Using the verifiable python system, all this means is a  million people agree to use a particular python shopping notary. Telegram offers the infrastructure. The business will run 'hot wallets', it bears risk.

The big gain for bitcoin is the international travel card.  Regular cross border travel involving a broad class of currency exchanges.  Bitcoin captures a large exchange 'widow', and will have the whitest currency exchange space, the fairest, fastest fiat exchange network.

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