The A Team
GloBee is rejuvenated and ready to get going on with some cool new projects, stay tuned for all of our updates on @GlobeeCom on twitter.
We would like to officially welcome our new CEO Felix Honigwachs. Felix hails from Germany and holds a Bachelors in Law branching out into an MBA honing into the Business Management & Marketing sphere.
Whilst Felix the cat (Yes, that’s his nickname) has taken on the operational reigns of directing the GloBee ship, Riccardo ‘Fluffypony’ Spagni is still involved in steering the GloBee ship at an executive level.
The Dream Team
We have also doubled our development & support talent pool. They will be focusing on new technologies that will make payment solutions more reachable and easier to use for the everyday user.
Our team of GloBees is constantly growing and with growing comes a lot of growing pains, which we are constantly working on. We are constantly looking for ways to introduce new technology into our system.
This article will provide some insight towards some of this new tech we are incorporating into GloBee. Specifically Bech32, SegWit, and the Lightning Network (Woosh!).
Short for Segregated Witness is an improvement on the way BTC transactions are made. This is an upgrade to Bitcoin that makes transactions more efficient and secure.
SegWit helps with the Bitcoin scaling issue. Transactions are cheaper, faster and helps with transaction malleability.
What does SegWit do?
In short it segregates the main part of the transaction data from the part that authorises the transaction, that being the witness. SegWit removes the signature from the transaction. Making no way for a malicious node to change the ID by changing the signature. By which the entire transaction becomes quicker, more scalable & more secure.
To illustrate, its like using uber services during peak hour traffic. During peak times, roads are congested and in order to use uber services, you need to pay a surcharge. Once you pay extra, your ride gets accepted and prioritised.
Similarly, during high bitcoin transaction traffic, when blockchain gets congested, miners always prioritise those who pay that “surcharge.” Segwit solves this issue by moving the signature block away. Whilst doing this, more transactions can fit into each block hence the quicker and cheaper transaction rate.
How is it More Secure?
Segwit solves the transaction malleability security issue where a receiver could intercept and modify the sender’s transaction ID to receive more coins from the sender. However, since the digital signature is detached from the input, the receiver could not change the transaction ID without also nullifying the digital signature.
What does it Mean to You?
Faster transactions. Simply put GloBee can process transactions that customers make much more quickly.
Whilst Segwit addresses have pioneered the Bitcoin Improvement Protocol in a sterling fashion, Bech32 goes one step further. Segwit addresses are wrapped in pay to script hash and that takes up more space on the blockchain. Bech32 saves even more space with smaller transactions with the same level of security plus they are easier to read and type, which makes it harder to make mistakes on. Bech32 transactions are easier to read, a lot easier to type and lot harder to make mistakes on, better for the blockchain because you are using less space so transactions are cheaper.
Bundle Settlement Limits***
We valued the feedback from the community, and with the combined effort of our management team and our customers we have made some changes to the Bundle Settlement Limits. Check our new article regarding the Bundle Settlements.
Lightning Network (Woosh!)
The Lightning Network is seen as one of the biggest solutions to cryptocurrency scaling. It does so by creating a layer on top of Bitcoin for faster and cheaper transactions, which can net settle to the bitcoin blockchain.
For example, let’s say someone wanted to pay you per hour of your service. You could open up a lightning channel, and as the hours go by, periodic payment would be made from their wallet to yours. When you are done, you would close the channel to settle the net amount on the blockchain. Because the transaction are only between the two parties and are not broadcasted to the entire network, they can be almost instantaneous, and because there are no miners that need incentivizing, transaction fees are lower.
How Does it Work?
Two parties who wish to make a transaction with each other need to firstly set up a multisig wallet (such as CoPay or BitGo). The wallet address is then saved to the bitcoin blockchain, which sets up the payment channel.
This allows the two parties to make unlimited transactions without ever touching the information stored on the blockchain. When the two parties are done with the transaction they will close the channel, and the balance will be stored on the blockchain.
What does it Mean to You?
Implementing Lightning Network for BTC payments this is very exciting for Merchants and their customers. As it will be particularly beneficial for customers making small transactions as the fees are lower and transactions will be faster and easier as well.