Author: raymo at riseup.net 2021-08-08 09:11:42
Published on: 2021-08-08T09:11:42+00:00
The Sabu protocol is a non-custodial system designed to encourage small Bitcoin owners to sell a few satoshi in person without KYC and earn small transaction fees. This boosts Bitcoin circulation and improves its overall ecosystem. The protocol incentivizes transactions between issuers and creditors that are not recorded on a public ledger or blockchain. To prevent fraud, Sabu uses a mechanism that makes it unprofitable for attackers. Issuers and creditors need to install the Sabu mobile wallet called Gazin to use the protocol. While less than one percent of these transactions will be recorded on the Bitcoin blockchain, millions of issuers and creditors are exchanging these documents in a peer-to-peer network continually with no central authority.Compared to Lightning, the Sabu protocol provides cost savings, ease of use, privacy, and scalability. Transactions in Sabu do not require opening or closing channels and only require a small Sabu transaction fee per transaction. The protocol offers strong privacy for transaction parties since the communication between nodes is PGP encrypted and no transaction goes on record on the Bitcoin blockchain.Sabu imposes new criteria such as each transaction input must be 20,000 Satoshi or more, and maximum liability in a single transaction would be 15,000 Satoshi, to prevent fraudulent activities. An issuer can earn Bitcoin by issuing credit liability documents, while a creditor can buy some Satoshi from the issuer and spend it in small shopping.The protocol is not centralized, and user information is scattered among thousands of different nodes, making it difficult for griefers to find many victims. The post also discusses how to prevent an issuer from spending UTXO in a cheating way, by paying high Bitcoin transaction fees or double-spending the promised UTXO. Overall, the fine-tuned Sabu protocol reduces most of the risks for issuers and creditors. The post concludes that most of the risks of Sabu protocol have been addressed after tuning the transaction parameters and the criteria of successful deals. The next step would be developing a Minimum Viable Product (MVP). The protocol and software will be open source and under GPL v3.0.
Updated on: 2023-05-21T03:26:05.201015+00:00