Original author: Nermin Hajdarbegovic
Coin News
Original author: Stan Higgins
Original author: Nermin Hajdarbegovic
(Click to enlarge) Previous 30 days average transactions per block. Source: Blockchain.infoThat’s why some companies processing bitcoin payments, such as Coinbase, use off-blockchain transactions. Instead of waiting for confirmation, they essentially guarantee that bitcoins transaction go through successfully on their platform by keeping an internal ledger of account.Eric Springer is the founder of BitUndo, a company that attempts to retrieve unconfirmed transactions on-blockchain. He says that ideas such as replace-by-fee could solve the possible implications of double spending unconfirmed transactions on-block by enforcing the replacement of an existing transaction only with another that has a higher fee.Said Springer:“Bitcoin would be a much better and more secure place with such a policy.”A test net (alternative bitcoin block chain) implementation of the replace-by-fee idea is already available on GitHub.Standard policies?Given that the problem with double spending unconfirmed transactions has to do with the differing ways that mining pools interact with the network, changing the way that transactions work by using replace-by-fee may not be the best solution to the problem.Said Dan Held, co-founder of ZeroBlock:“I think this reinforces the need for standard practices by miners in accepting transactions.” 
Mining distribution by pools. Source: Bitcoin ChartsHeld believes that there should be a standard policy in place for confirmation of transactions, instead of different mining pools each treating a transaction differently, even if that’s not necessarily by design.“If you know a big enough mining pool, you can forward your transactions to them, knowing that the transaction will be sure to go through,” he added.Every pool has its own mining rules, and this discrepancy is part of the problem, according to Held. But with the network having such a distributed nature, there’s no way to enforce a change to this unless it is made within the core client itself.Confirmations and nodesBecause of widely held desire for bitcoin to eventually facilitate many small transactions, the idea of zero confirmation should be something that people will get used to.“Zero-confirmation but valid transactions are meant to function this way, and there’s a risk tolerance at which they’re acceptable versus not,” says Sean Neville, CTO of Circle Internet Financial.Neville believes that zero confirmations are just a part of the transaction process, which is why some companies use off-block chain transactions. But some organizations are willing to accept that risk in return for using bitcoin as a payment method.Added Neville:“Confirms exist only to solve the double-spend problem for on-chain transactions.”He said that in order for a transaction to complete, a transfer must occur in the form of a private key signing a transfer – even when there is not yet a confirmation:“Without confirms, you can still have valid transactions, and those can certainly have been previously spent, or spent again in the future to force a double spend and failure – unless they’re off-chain,” said Neville.Neville believes in the power of keeping transactions off the block chain, but it’s not the only way to reduce the potential for double spending. 
The probability of a double spend on-blockchain depends on the number of nodes connected. Source: IEEEIn a paper written by IEEE, researchers found that the more nodes that are connected to the network for a transaction, the lower the chances that it will be double spent.It’s possible, then, that a number of randomly connected nodes to the network could be used in order to prevent double spending when using the block chain.Looking aheadNothing is ever guaranteed, but the issue of unconfirmed transactions causing a crisis of double spending doesn’t look likely.Said Ross McKelvie, Lead Engineer at startup incubator BoostVC:“In five years, the average bitcoin user won’t be able to execute a double spend, even if the same differences in software exist.”McKelvie agrees that differences in software between mining pools and users can create some imbalance that allows some people to exploit and double spend. However, it’s highly unlikely to affect the network as a whole, he said.McKelvie thinks that the number of smart people working on the stack in the years to come will be able to strengthen the system to the point where this issue simply won’t matter anymore. 
(Click to enlarge) Previous 30 days average confirmation time. Source: Blockchain.infoWhether that comes about from adding replace-by-fee, implementing new network mining policies, or simply relying on off-block chain transactions – or perhaps even none of these – the bitcoin industry will be able to figure it out.McKelvie noted, however, that it’s best not to be apathetic towards problems like this:“That being said, the Internet is a very big space and the Heartbleed vulnerability was out in the wild for two years, so issues like [double spending] are something to be mildly worried about.”Two bitcoins image via ShutterstockBitundodouble spendingreplace-by-feeunconfirmed transactionsOriginal author: Daniel Cawrey
Original author: Nermin Hajdarbegovic
Original author: Pete Rizzo
A Cubesat-based satellite. Source: University of TokyoFrom orbit, the BitSats will be able to broadcast out as nodes, providing transaction information via solved blocks. It’s the partnership with Deep Space Industries’ design and engineering that will help get the project off the ground.Garzik, who is also a senior software developer at BitPay, thinks space is a tool to help bitcoin:“I believe space holds the promise of our future, and also offers a lot of utility right now.”The joint project is expected to allow users to access a downlink from the satellites to access the information from space. This downlink will be provided by a vendor, however bitcoin enthusiasts will be able to set up their own receiving equipment.Donation effortA plan to launch bitcoin satellites into space may sound audacious, but it is certainly not a joke. Garzik first told CoinDesk about the plan back in December, and that the costs associated with the project are estimated at $2m, given the burgeoning private space industry lowering the expense getting objects into orbitIn order to fund the project, Garzik and his collaborators are looking to raise money. There is a Google Group for discussion and updates on the BitSat project’s progress and there is also a donation address for those interested in contributing.And it seems other bitcoin fanatics are also space enthusiasts: Richard Branson recently confirmed that six passengers reserving seats on future Virgin Galactic orbital flights paid for tickets in bitcoin.High orbit image via ShutterstockBitSatjeff garzikspaceVirgin GalacticOriginal author: Daniel Cawrey
Original author: Jon Southurst