DASH’s CEO Criticizes Bitcoin’s Security For Blockchain Transaction Payments
Ryan Taylor, the CEO of DASH, has recently told the media that Bitcoin’s security system is flawed. He claimed that, while Bitcoin could be considered a secure platform for making transactions by using the blockchain technology, it is not really good at ensuring the security of the clients that are using the tokens.
According to the CEO, once a payment in Bitcoin is made by a customer there is simply no recourse that the client can use in the case that the delivery of the goods or services is failed somehow. This means that by using Bitcoin the security is ensured for the merchants, which are the least important link in terms of security, as merchants generally have the upper hand on transactions.
Bitcoin prohibits the customers from making fraudulent chargebacks but it does not protect them at all from fraudulent merchants and from goods that are not delivered by any reason. He also stated that the onus of paying is completely put on the customer using this technology. Unlike credit cards, which the customers are paid back in services like cash backs, rewards and similar offers, Bitcoin offers no such thing.
DASH Is Working To Enhance Transactions
Taylor affirms that DASH is concerned over how the cryptocurrency transactions made by the company can be done and enhanced for both the merchants and the customers, not only the merchants. He also stated that DASH intends is focused on new ways of payment that are applicable to any new payment method.
According to the CEO, the first generation of tokens, including Bitcoin, did not exactly nail the way to make the tokens usable in the better possible way and there is a lot of room for improvements. He understands that the first generation was made mostly by computer scientists and that cryptographers and tech experts are not necessarily the experts about payments.
Because of this, Taylor believes, it is very important to apply the best practices of the industry to develop so it can have a positive impact on what is being made in the industry.
Blockchain And Bitcoin
The whole structure of Bitcoin and the blockchain technology was created from the idea that people are able to share valuable data in a way that this data cannot be tampered with. The blockchain is a complex system that involves cryptography and mathematical calculations to prevent hacking and manipulation of data. Bitcoin works like an accounting ledger.
The ledger is stored on many computers in what are called nodes and each time a transaction is made, the nodes check to ensure that the transaction has validity and that the person actually had enough Bitcoin to spend.
The nodes compete in validating transactions and creating blocks. This process is known as mining. By mining tokens, users validate the Bitcoin transactions and receive rewards for mining blocks.
About Bitcoin Security
Even if Taylor does not believe that Bitcoin is safe, the system is theoretically tamper-proof because the cryptographic fingerprint of each block is unique. All the nodes have to agree on their shared history, the consensus protocol. This means that there is no space for fake information. This is where even Taylor believes that blockchain works well.
However, Bitcoin security only verifies the transactions, as the system actually lacks something like the smart contracts of the Ethereum network that ensure that both sides agree before making the transactions. The transactions on the Bitcoin distributed ledger are one-sided. You send, the other receive. If the person will send you something, it is up to the person.
So, while Bitcoin is theoretically tamper-proof (although some people believe that if a single person can get 51% of the network they can use their power to tamper and fake a consensus), the system just did not take into account the type of problem that could emerge outside of the Bitcoin system and that is why second generation tokens like Ethereum and DASH are trying to do better.
Are they actually better? That is discussable, but the truth is that their main advantage is that they are certainly concerned about the flaws while the Bitcoin system simply is concerned that the transactions are not faked in any way.