The phrase “Peer to Peer Electronic Cash System” on Bitcoin SV is once again relevant thanks to HandCash and Money Button. The two partnering companies are applying what, according to the BitcoinSV community, is the true nature of Bitcoin.
The announcement of the two projects is open to the whole community of BSV and has the intent to not promote the work of the two partners but to make their guidelines a beacon for the whole ecosystem.
HandCash and Money Button have been sending all transactions directly, without intermediaries, for over a month. This has probably been a rare example of peer to peer application between services in this environment.
It’s not a noticeable change for users, but it allows the app to handle notifications faster and lower certain fees, as many companies will no longer have to rely on a full-node or third party to handle it for them.
The attempt is to change the approach to using Bitcoin’s blockchain in an effort to embrace the concept of peer to peer electronic cash.
The current process is the following:
- User > Full node > Miners > Application
With Bitcoin (BTC), systems such as the Lightning Network or the Liquid Side Chain have also been developed, capable of scaling Bitcoin and its transactions to different levels that do not follow this logic.
The goal is to have a process like the following:
- User > Application > Miners
- The user sends the transaction directly to the application
- The application transmits the transaction directly to a miner
- The miner queues the transaction for the next block
An approach not shared by Bitcoin (BTC) supporters who consider the mechanism generated by this model insane. According to them, the system leads to a centralization of miners’ power with all the bad consequences it could have on the network in terms of security, resilience and defence against attacks.
The original Bitcoin software had two methods to send payments:
- Sending to the address;
- Sending to the IP.
The latter method allowed Alice to deliver the transaction directly to Bob, without an intermediary.
The problem was that it linked to the recipient’s IP address, which was not encrypted and not authenticated on the Internet.
This meant that a MITM (man-in-the-middle attack) was possible.
Attackers could replace an address with their Bitcoin address, becoming the receiving end for that transaction, thus stealing the funds.
Hence the developers of the time removed IP-to-IP because the implementation was insecure.
According to BSV developers, this removed the peer-to-peer nature of the protocol by paralyzing Bitcoin apps.
Thanks to Paymail, the two partners involved in the announcement want to re-establish the peer-to-peer and correct all the inefficiencies that limit the growth of the network.
Paymail enables secure end-to-end encrypted communications and authentication via HTTPS, solving all the problems that affected Bitcoin developers in the early stages.
This has become a problem since the volume of transactions required by Bitcoin apps has increased.
Not everyone has the same vision of how the problem should be solved.
If Satoshi Nakamoto is the mysterious prophet who is able to communicate a new model of managing records between people, then his whitepaper has often been associated with sacred scripture.
As such, his interpretation creates disorder and discontent.
From the very first line of his wise testament, Satoshi Nakamoto is interpreted differently by the developers and communities that adhere to the tools made available by the ecosystem.
This is one of the reasons why alternatives (forks) like Bitcoin Cash and Bitcoin SV have been generated: different visions of a system that would like to be unique and global.
When it comes to vision, Bitcoin SV’s “Satoshi Vision” manifests itself in the techniques used by its apostles to advance the applications that interact with BSV’s blockchain.
Money Button and HandCash are developing two models in which the use is simple and fast, but only the future will tell us if their approach is safe and sustainable.