SatoshiPay, a blockchain-based nanopayments company that enables digital transactions on a micro-scale, today announced its partnership with the IOTA Foundation to explore replacing Bitcoin with IOTA as the company’s settlement network.
17 July 2017
Since its 2015 product launch SatoshiPay relied on the Bitcoin network to settle nanopayments. Initially Bitcoin transaction fees were negligible at below €0.01 per transaction of any amount. Due to Bitcoin’s rising popularity in 2017, combined with stalling scalability improvements, the network’s transaction limit regularly gets hit, leading to congestions and fees rising to uneconomical levels.
To sustain its business model based on frequent low-value payments, SatoshiPay is seeking to replace Bitcoin with a much more suitable distributed ledger technology.SatoshiPay CEO Meinhard Benn said: “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.”
The IOTA network, with its token listed as 8th largest cryptocurrency on coinmarketcap.com at a market cap of €460m, offers zero-fee transactions and does not limit the number of transactions per second, making it unique among cryptocurrencies and an ideal ledger technology for SatoshiPay’s future needs.
The IOTA Foundation and SatoshiPay agreed to work on a proof-of-concept project supported by the IOTA Ecosystem Fund, combining SatoshiPay’s frictionless content payment interface with IOTA’s scalable ledger technology.
The results of the joint proof-of-concept are expected to be presented in August 2017. Users of the upcoming project website will be given free IOTA tokens to try out instant payments for digital content like videos, images or downloads.
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