Author: Jonas Schnelli 2017-01-04 07:47:10
Published on: 2017-01-04T07:47:10+00:00
The writer agrees that unconfirmed transactions are important but not over Simplified Payment Verification (SPV) against random peers. Merchants accepting payments with the risk of chargebacks is a costly option, and bitcoin serves different use cases with varying levels of time sensitivity and fraud risk. The writer suggests eliminating merchants' use of zero-confirmation SPV transactions from random peers through education and offering different solutions. These solutions include running a full-node or using a wallet service with centralized verification and two-factor authentication, such as Copay. For end-users, the writer recommends disabling unconfirmed transactions during SPV against random peers, enabling them for trusted peers with preshared keys after BIP150, educating users on the risks of low-conf phase (1-5), and showing how to enable unconfirmed transactions by running a full-node. Finally, the writer suggests sacrificing the "incoming funds" feature in SPV wallets for stability and risk-scaling, using privacy-preserving Blind Federated Drops instead.
Updated on: 2023-06-11T04:59:10.141484+00:00