Author: Adam Back 2014-11-17 11:20:56
Published on: 2014-11-17T11:20:56+00:00
The idea of putting transaction data in the blockchain seems to be gaining popularity for three reasons: convenience, backup, and atomicity. However, it is important to keep the data design-compressed and minimal for scalability purposes. The use of the blockchain as a convenient channel is not a strong enough reason to justify its use, especially when there are other reliable channels available, such as email or web forms. In terms of backup, the blockchain is not an efficient or reliable mechanism due to its broadcast nature. Cheaper and simpler methods, such as cloud storage or disk encryption, can provide end-to-end secure backup with related keys. Atomicity is an example application that may require the use of op_return stealth addresses. If the message is lost and the sender did not keep it or cannot be relied on to care, then the money could be permanently lost to both parties. Sending both the extra message and the signed bitcoin transaction over a reliable store and forward channel could achieve the same atomicity while providing privacy, efficiency, and SPV advantages over sending to the blockchain. A bitcoin-related but separate reliable store and forward channel for auxiliary data could act as a good substrate for invoices, receipts, and other things necessary for applications, transaction disputes, and records for normal P2P trades and business functions with decentralization and privacy. Slow transports can offer better security than interactive transports.
Updated on: 2023-06-09T14:16:06.963787+00:00