If you know anything about Bitcoin, you probably already know at least a little bit about BitPay. For those of you who are new to the world of cryptocurrency, let us fill you in. BitPay is an international Bitcoin payment service provider which was established in 2011 and has headquarters located in Atlanta, Georgia in the United States.
As the price for Bitcoin continue to rise and the difficulty in mining new Bitcoin becomes more complex, the fees associated with sending Bitcoin are also increasing steadily. This is part of the reason why BitPay has decided to implement a mandatory Bitcoin Payment Protocol which will have to be used by Wallet Service Providers. In the past, BitPay has made some changes to their company which weren’t always appreciated by all of their users. However, these new changes are welcomed by most users, especially those who are new to Bitcoin transactions. Ideally, this implementation of the Payment Protocol Support should eliminate a large number of erroneous transactions and save a pretty high amount of Bitcoin which are wasted when users are forced to pay fees for erroneous transactions.
Generally, users who are already familiar with Bitcoin wallets and specifically the BitPay invoice system have absolutely no problems making payments. The process is pretty easy: you simply copy and paste the wallet address and presto. Alternatively, you can also scan the QR code and you are done. If you know your way around a computer, this shouldn’t be too difficult. However, to some novice users, this process might seem a bit more complicated.
Some users who are in a hurry or simply don’t pay enough attention to what they are doing end up sending the wrong amount of Bitcoin to settle their invoices. This generally isn’t an issue, since the recipient can simply send the Bitcoin back and a correct transaction can be created. The problem is the fees that are constantly growing for each transaction. Not only will you lose the Bitcoin amount from the original transaction, but chances are the receiver will also charge you the transaction fee and you will most likely have to pay another fee when sending the correct amount of Bitcoin to settle the invoice. That’s three different transaction fees that can add up to a huge amount of money.
BitPay Invoices System Features
Besides sending the wrong amount of Bitcoin, some users have also managed to send Bitcoin to the wrong address. There is also a common problem with paying the wrong amount for the required transfer fee, which if too low can result in delays to verify the transaction. As you can imagine, these mistakes can be done pretty easily and many users are becoming fed up with constantly losing money through these erroneous transactions. The problem is that there is no simple way to solve this specific issue. All Bitcoin transactions have to be done manually.
Luckily, BitPay has managed to crack the problem via the use of their Payment Protocol. Its function is pretty simple: eliminate user end error by filling out the necessary information for you. A connection between a customer and BitPay will be established through an SSL protocol, which in turn will fill out all needed information for the transaction. This means the users won’t have to fill out anything manually, and all they have to do is verify the information and press a button. This seems like a pretty easy solution to a very common problem.
More Error Elimination
This protocol will also be capable of analyzing each transaction and determining the correct miner fee. This means that each transaction will have the right fee amount attached to it, which will hopefully get rid of all those delayed transactions. Not all users are happy with this decision, and some are stating that technically this type of automation takes complete control of funds away from the user. So in a way, there are both benefits and downsides to this new Payment Protocol.
We think that the positives heavily outweigh the small control sacrifice that some users would have to make to eliminate all these potential issues. The only way to find out how effective this protocol will be is to wait and see how many Wallet Service Providers will end up using this new feature. Until then, all we can do is speculate.