Bitcoin has grown into a promising payments platform which is being increasingly adopted by both big and small-time e-commerce players. There are select brick and mortar shops too which accept bitcoin payments for goods and services sold. As people become familiar with the concept of bitcoin as a payment option, there is still some apprehension about using it for buying goods and services online due to few underlying shortcomings.
Bitcoin transactions are one-way, once a transaction has been executed, it can’t be reversed. In such a circumstance, if there is a deficiency in the goods and services bought using bitcoin, the customer has to rely on the vendor to manually refund the bitcoin payment by initiating a new transaction to the customer. Similarly, if someone ends up sending bitcoin to a wrong wallet address by mistake, it is lost forever, unless the person grows a conscience and returns them.
The Bitcoin Protocol introduced as part of the Bitcoin Improvement Proposal, BIP70 has so far been responsible for supporting payments on the Bitcoin blockchain. Now, the Bitcoin Payment Protocol is set to become even better with the introduction of BIP75. The new proposal is an extension of its predecessor, BIP70. Drafted by 4 people – Matt David and Justin Newton from Netki along with the Breadwallet duo, Aaron Voisine , and James MacWhyte . Bitcoin Payments and BIP75
BIP75 calls for 3 major enhancements to the Bitcoin Payments Protocol. Starting with support for 2-way identity exchange where the bitcoin payment information can be exchanged between both parties to the transaction. Exchange of payment information is secured by strong encryption which prevents the chances of the man in the middle encryption.
The flexibility of payments offered by Bitcoin makes it ideal for mobile based payments. One can just scan the recipient/vendors bitcoin wallet address […]
