Veriblock Blockchain Project Creates New Debate For Posting Over 25% Of BTC Transaction Numbers
Veriblock is a blockchain project that works off of the support of the Bitcoin Core (BTC) network, but their recent transaction numbers have become a cause for concern lately.
The use of the blockchain has been widely frustrating for experts, considering that their system has been responsible for over a quarter of the transaction numbers on the BTC network.
Most people are not even aware of the way that this is even happening, which could be due to the proof-of-poof (PoP) system that the company uses, stemming from the BTC chain and its security.
Basically, Veriblock is trying to establish another option for blockchain security, using OP return transactions and other types of transactions to embed an “SP blockchain transaction.” Jameson Lopp, a BTC developer and the CTO of Casa, discovered the abundance of Veriblock transactions on the blockchain, exceeding the BTC-based OP return transactions.
Explaining the discovery, Lopp said,
“Source of the now-highest volume of OP_RETURN outputs has been identified as Veriblock ‘proof of proof’ miners. They are creating around 20% of all BTC transactions now.”
Another post from Lopp shared:
“53% of Bitcoin OP_RETURN outputs were used with the @Omni_Layer protocol in 2018. In recent months we’ve seen a large increase in output volume with data payloads no one seems to recognize.” He explained, adding, “OP_RETURN is a method of embedding data in the blockchain, which enables you to use Bitcoin as a data anchor.”
Right now, the Veriblock project is still in the testnet stage, but that’s been enough to get the attention of some enthusiasts, even though others have called it “garbage,” accusing Veriblock of spamming the whole network.
This caused a debate over whether the transactions would be actually considered spam, though it doesn’t matter realistically.
Users pay for the block space, which makes the transactions technically legitimate. With their recent actions, Veriblock believes that other blockchains will ultimately see the value in the PoP system, considering the leverage they can take on concerning security.
The website for Veriblock states,
“As a result, the reinforced security provided by PoP will encourage further adoption of these alternative blockchains,” Veriblock’s website details. “The transition of transactions from Bitcoin to alternative blockchains will also facilitate Bitcoin scaling, while continuing to drive value back to Bitcoin miners.”
Since Veriblock basically draws from the security of the BTC network, there’s a safety net that they offer as an alternative to other networks. With this type of security protocol, it is even possible to detect attacks at their earliest stages, and there’s protection from both 51% attacks and double spending. CTO Maxwell Sanchez and CEO Justin Fisher are responsible for operating Veriblock, which also has support from Jeff Garzik as the technical advisor, though he used to be a Bitcoin developer.
Along with Veriblock’s use of the BTC chain for the necessary leverage, there’s been other cases of projects doing the same. Omni Layer, which is best known for the issuance of the Tether stablecoin, uses OP_return transactions like Veriblock, while Counterparty uses a proof-of-burn (PoB) algorithm. Namecoin employs merge mining, just like the RSK network. As a result, the PoB protocol uses 45% of the BTC network hashrate.
There are plenty of supporters of BTC that completely disagree with the merge mining process and related protocols, since community members feel uneasy about the power that miners have in this situation.
Even though the community feels concerned about spam or similar issues, the network itself is permissionless, which means there is nothing to worry about beyond a few internet rumors.