Like many innovations, Bitcoin has taken an interesting path. While it still holds promise as a cryptocurrency, the technology behind it shows more widespread promise.
And like many revolutionary developments, its early iterations have their flaws.
Combine the flaws and the potential and you have a market opportunity for people who can do it better and faster.
Chris Kitze is one such person. The founder and CEO of Safe Cash Payment Technologies says Bitcoin has its flaws so he built a better product.
“Because of its slow consensus time, uncertain governance, and price volatility, Bitcoin is not a reasonable solution for banks, and it’s not built to scale for massive adoption of instant e-commerce.” Mr. Kitze said.
“We also have a clear technical path to increase this speed to 100,000 transactions per second later this year, well in advance of that kind of global demand.”
Safe Cash currently handles up to 25,000 transactions per second on its blockchain, more than 3,000 times as many as Bitcoin. Its time to completion and final settlement is less than five seconds.
Mr. Kitze explained Bitcoin is slow because it is decentralized. Transferring blocks across a network or peer to peer over a network takes time.
Safe Cash’s architecture is not completely decentralized and that was on purpose so it is more suitable for banks, he added.
And don’t get caught up on the numbers, Mr. Kitze cautioned. Yes he sees a day soon coming when his technology can handle 400,000 transactions per second, but it does not have to do that now. PayPal and Visa may average 3,000 transactions per second and peak at 50,000. At its current capability the technology more than suffices.
Good luck doing that, Bitcoin.
“No one scaled blockchain,” Mr, Kitze explained.
As popular technologies increase their capabilities that threatens the blockchain even more. Today’s iPhone has the capacity of yesterday’s $250,000 server.
Present and future technologies owe a debt to Bitcoin, Mr. Kitze explained.
“Bitcoin was a wonderful proof of concept. It is more valuable as a public ledger than it is for money.”
Every satoshi in a Bitcoin can have its place in the blockchain. Use that as a public ledger to register valuable purchases, so if something is stolen you can go to the blockchain, report it stolen and have it turned off. The product cannot be transferred and that limits its attraction to thieves, Mr. Kitze said.
And most people will not even know it is there, which is fine with them, Mr. Kitze explained.
“Most people want to know what time it is. They don’t want to build a watch.”