BitAsia Now Supports BCH Zero-Confirmation Transactions
Chinese cryptocurrency trading platform, BitAsia, now supports zero-confirmation trading of Bitcoin Cash. An unofficial translation of the official news release on the exchange’s website read: “After careful consideration and careful consideration, BitAsia will support BCH zero confirmation ( 0 – conf ) arrival and instant trading” adding that “For other currencies that have the SegWit mechanism, our current policy remains unchanged.”
0-conf Is a Sign of Trust
With the announcement, BitAsia now ranks among the first cryptocurrency trading platforms to add zero-confirmation support. In common cryptocurrency trading practice, sellers wait for confirmation from computers running the blockchain that the transaction was recorded on, before providing what was sold. However, in a zero-confirmation transaction, the seller who is receiving cryptocurrency as part of a deal doesn’t wait for verification that the money was sent, and instead immediately delivers what was sold. Thus, a zero confirmation transaction is a sign of trust. The seller trusts that the buyer will not try to spend his digital money again elsewhere before the first transaction is recorded by a computer on the blockchain.
Other Companies That Have Adopted the System
While critics of zero-confirmation transactions continue to believe that miner verification is essential to prevent double-spending (a scam where one Bitcoin is spent at two different places at the same time), companies including Shapeshift, Bitnet, CoinHako, QuidPOS, Streamium, and now BitAsia, have already adopted this system to make transfers faster for their customers. Moreover, with Block Cypher’s confidence factor, for real-world (smaller) transactions, there’s just a 0.1% chance that an attempted double-spend will succeed.
However, as promising and speedier zero-confirmation transactions may sound, their basis continues to rest on trust and chance; trust on the buyer of not double spending, and the chance of a double-spending attempt not succeeding. So, the likelihood of miner verification and confirmation going away completely anytime soon seems very low.