nChain’s Chief Scientist Dr Craig S Wright has continued with his weekly series on his Medium account, revealing new applications and uses for Bitcoin. In the powerful series, Wright shares his ideas about and expertise on new ground-breaking applications and services—made possible on the Bitcoin SV blockchain.
Wright’s third entry in the series is entitled “Taking money over the web using Bitcoin — the way it was designed,” and focuses on the seamless integration and facilitation of payments on the web using Bitcoin; the solution allows both fiat and bitcoin (and any tokens for that matter) to be safely accepted for value of consideration or payment—in a manner that is more structured, organised, and thus more efficient than current standards.
The solution is an application of nChain’s patent innovations for Deterministic Key Generation and Secure Split Key Technique, and allows for EDI (electronic data interchange) standards, tools, and message types to be applied more securely and efficiently.
In business terms, organisations such as SAP can increase the reliability, feasibility, and privacy for bookkeeping services through several aspects of the innovation:
- Organisation: A master key is used to establish a hierarchical key structure; an identity key, which may carry a certificate through an established authority (for merchants, for example), is maintained to ensure authenticity and integrity for the exchange of information, while new key pairs (subkeys) for payments are created for every use. Certificates can have expiry dates, where legislative requirements are kept in check in a timely and automated manner.
- Privacy: Both the merchant and the consumer can provide evidence for a transaction without exposing themselves to unnecessary public records; as keys can be allocated and delegated separately, no more than the necessary information is passed on. In other words, each bill can be kept separate and solely between the buyer, the merchant, and the tax authority—granting visibility on an individual basis and retaining ultimate privacy for each participant.
- Security: Another benefit of having a hierarchical key structure and new key pairs for every payment is the security it brings with it, as the breach of one such key does not grant access to other orders or purchases of a client. The breach is, in fact, highly unlikely to begin with, as the use of a shared (or common) secret requires authorised access from several points of the transaction origin. A data leakage or hack is thus limited in scope.
- Ease of use: Because of the clear cut-out structure and integrity of the proposed system, public audits by tax authorities can be carried out in an automated way without delay—saving costs and time for either party, while adhering to legislative and accounting requirements in a manner most seamless to a business or consumer (peer-to-peer at its best).
The solution is one of many cornerstones of nChain’s ground-breaking Metanet project, and brings us closer to establishing the Internet services we know (and more) on top of a safer and more efficient back-end—by using Bitcoin SV as the world’s global blockchain and database.
And there is more: The system can be integrated with current EDI and accounting standards and tools, allowing for more reliable bookkeeping and one, as Craig Wright puts it, which cannot be “deleted, altered, or manipulated.”
Even tokenised fiat—through protocols such as Tokenized—can be exchanged using Bitcoin as the underlying payment-data or “plumbing” infrastructure, which would pose no change in habits on the payment side, yet retain transactions at a more secure and private level.
Implement the BSV-powered web payments and bookkeeping (call it “BDI” for “Bitcoin data interchange”), and follow more exciting new applications and solutions by reading Craig Wright’s entry here.
Or get in touch with nChain Professional Services here.