SatoshiPay To Phase Out Bitcoin Blockchain For Micropayments

SatoshiPay, the micropayments blockchain startup, has announced it is to phase out its reliance on the bitcoin blockchain, as it prepares to switch to IOTA.

Having relied on the bitcoin blockchain since the company was founded in 2015, the partnership with the IOTA Foundation announced today represents a significant change of direction for the company, as it prepares to take advantage of lower transaction costs and faster execution times.

According to SatoshiPay, the transaction costs for processing settlements on the bitcoin blockchain have risen from $0.02 back in 2015 to over $2.40 in the latest quarter.

By switching to IOTA for settlement, the company hopes to reduce these settlement costs per transaction, as well as improving execution durations for quicker settlement.

Meinhard Benn, the CEO of SatoshiPay, said that while bitcoin was instrumental in shaping their business, and the wider blockchain space, the time was right for SatoshiPay to investigate alternatives.

“We love bitcoin for its pioneering role in the creation of our industry, but some blockchain networks it inspired have evolved faster than bitcoin itself, so we decided to move on to superior technology.”

Initially, SatoshiPay will work with the IOTA Foundation to create a proof-of-concept model, before considering rolling out the technology across their existing systems.

The proof-of-concept model is expected to be presented later in the summer, with August the current target time frame for the development.

IOTA is the eighth-largest cryptocurrency by market cap, and offers settlements with zero transaction fees — in sharp contrast to the escalating costs of doing business on the bitcoin blockchain.

Additionally, there is no limit to the number of transactions that can be processed per second through their technology — another significant advantage for volume processors over relying on other blockchains.

The move follows similar steps by blockchain content startup Yours, which announced several months ago it was switching from the bitcoin blockchain for similar reasons — this time, in favor of the litecoin blockchain, for faster processing and less significant settlement costs.