Does Bitcoin Need Accounts?
Aaron always has some interesting stuff…
Does Bitcoin Need Accounts? One Developer Thinks So, and He Figured Out How
“’We are somewhat used to Bitcoin payments the way they are, but it’s really an atrocity,” Cañuelo told Bitcoin Magazine. “It’s like using the internet without domain names, relying only on IP addresses — only worse, because crypto addresses are way longer, uglier and constantly changing.’
To solve this issue, over the past year, the developer figured out how to bolt an account system on top of Bitcoin. Having extensively detailed the idea in a new white paper, Femenías is now proposing his Layer 2 protocol: Easypaysy.
While preserving Bitcoin’s most valuable attributes — such as privacy and self-sovereignty (no need to rely on custodians) — the Spaniard believes his proposal would improve the Bitcoin user experience significantly: It would enable non-repudiation, recurring payments, and more…
All that said, one of Femenías’ account system’s most powerful features, may also be its biggest drawback: It relies fully on the Bitcoin blockchain by embedding account data in it. Block space is scarce, however, and scalability is a challenge.
To minimize this problem, Femenías in his white paper suggests that accounts could also be opened in bulk: One transaction could include hundreds or even thousands of accounts, for as many users. In this case, the OP_RETURN data would point to an outside source for all the account data, perhaps a website. The OP_RETURN would also include a Merkle root for all this account data, so the payer can check the account data against the Merkle root. While this solution would depend on an outside source (like a website), at least users could make sure the data isn’t tampered with.”