SatoshiPay switches from Bitcoin blockchain to IOTA

SatoshiPay has teamed up with the IOTA Foundation, a non-profit that oversees network development, to explore replacing Bitcoin with IOTA as its settlement network.

 

Both parties have agreed to work on a proof-of-concept project, to be supported by the IOTA Ecosystem Fund, which would combine SatoshiPay’s content payment interface with IOTA’s technology. SatoshiPay is a company that processes nanopayment transactions usually in the form of Bitcoins and has been relying on the Bitcoin network to settle payments since its product launch in 2015.

 

The move aims to phase out its use of the Bitcoin blockchain, as the underlying technology that enables its transactions, and to switch to another blockchain because of issues with the escalating costs of micropayments.

 

The IOTA network, the 8th largest cryptocurrency by the total value of its supply, according to CoinDesk, claims zero-fee transactions and does not limit the number of transactions per second of its processing. By contrast, according to CoinDesk’s forthcoming State of Blockchain report, the average transaction fee for Bitcoin blockchain was around USD 2.41 per transaction during April 2017-June 2017, up from below USD 0.02 in 2015.

 

The results of the joint proof-of-concept are expected to be presented in August 2017, according to the IOTA foundation.

 

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