BTC.com Adopts Bitcoin Improvement Proposed By BitPay To Improve Commercial Payments
BTC.com, a subsidiary of Bitcoin (BTC) mining giant Bitmain, has officially adopted the Bitcoin Improvement Proposal 70 (BIP70) proposed by payment processor BitPay to allow the Bitcoin wallet provider's 1 million customers to utilize BitPay's network to make commercial payments using Bitcoin.
BTC.com, a subsidiary of Bitcoin (BTC) mining giant Bitmain, has officially adopted the Bitcoin Improvement Proposal 70 (BIP70) proposed by payment processor BitPay to allow the Bitcoin wallet provider’s 1 million customers to utilize BitPay’s network to make commercial payments using Bitcoin.
Bitpay to simplify market access for BTC users
The vast BTC.com customer base will be able to make purchases in crypto and easily access any of the businesses that make up the $1 billion merchant market served by BitPay.
Bitcoin developers Mike Hearn and Gavin Andresen first proposed the BIP70 in 2013, stating that it would help improve the overall experience customers had when using cryptocurrency in commercial transactions.
The proposal sought to make it easier for merchants to accept crypto payments by creating a platform that allows for the use of human-readable addresses instead of a standard Bitcoin address.
Similar to how a website will use an address like “domain.com” instead of the set of numbers that serves as its IP to identify itself, it is much easier for a user to have a such an address for their wallet instead of a long string of random characters that are easy to misread or misremember.
It also allows for the payment standard to support messaging, on top of being able to generate refund addresses automatically.
BIP70 reduces the rate of errors
BitPay integrated the BIP70 proposal earlier this year, adopting it as an invoicing standard. It consequently asked its users, who use BTC and BCH to make payments to BitPay-affiliated merchants, to ensure that they have access to BIP70-compatible wallets.
According to the firm, the changes following the BIP70 adoption have had a positive impact already. In a recent blog post, the payment processor revealed that the rate at which users made an error when making payments had declined significantly.
BitPay said that at the moment, client error rate is just 0.27%, compared to nearly 10% recorded in June last year, thanks to the implementation of BIP70.
And according to Alejandro de la Torre, the vice president of BTC.com’s business operations, BIP70 is a great feature that will help its 1 million users.
He said that they chose to adopt the standard as a way of helping its customers benefit from the vast BitPay merchant market. As quoted by CCN in an exclusive interview, de ka Tirre said that:
“When a merchant uses BitPay, for their customers to pay using bitcoin or bitcoin cash, they must use a BIP 70 compatible wallet to complete the transaction.”
Criticism of BIP70
Even though BitPay has emphasized that BIP70 has been instrumental in reducing the number of errors related to Bitcoin and Bitcoin Cash payments, some critics insist that it exposes users to certain risks.
Some experts have pointed out that BIP70 could be responsible for an increase in risks related to know-your-customer (KYC) and anti-money laundering (AML) regulations. Critics also allege that the payment standard could see an increase in the effective blacklisting of users.
More worryingly, critics point out that the protocol could pose security threats to bitcoin payments by making it vulnerable to bugs in OpenSSL.
While most wallet providers have remained reluctant in upgrading to the BIP70, choosing instead to continue using BIP21, BTC.com rejects these concerns and has said that they have evaluated all the security and privacy issues BIP70 critics have hinted at.
According to de la Torre, there is nothing to warrant concern and that he is certain the company’s customers are “completely safe.”
He also said that these improvements and upgrades make crypto more user-friendly and safe. To compete with the credit card, cryptocurrency needs to capitalize on the shortcomings being witnessed in the traditional payment industry.