Author: Eric Lombrozo 2015-06-21 08:51:51
Published on: 2015-06-21T08:51:51+00:00
In an email exchange on June 21, 2015, Btc Drak informed Eric Lombrozo that BitPay understands the risks of 0-conf and does not particularly accept zero confirmation transactions. When a payment is seen on the network, the payment screen reports the invoice has been paid, but on the back end it is marked as paid and the API exposes the confirmation status, allowing the merchant to make business decisions about when to progress to fulfillment. Coinbase, on the other hand, does not expose the confirmation status and guarantees payment to merchants for 0-confirm, regardless of whether they confirm or not. Lombrozo noted that this essentially puts Coinbase in the role of an insurer and questioned whether they were taking appropriate precautions to limit potential losses and if they could survive a worst-case scenario with at most a surface wound.
Updated on: 2023-06-09T23:51:40.346748+00:00