The latest to integrate Bitcoin into the larger exchange system comes off a novel idea from David Knezic, a crypto enthusiast.
He has created a candy dispenser that works by scanning QR codes and sending Bitcoins as payment.
Proving Bitcoin Criticism Wrong
Bitcoin prices have reached an all time high, being the most popular cryptocurrency. However, there are detractors who decry this cryptocurrency.
Bitcoin has come under a lot of flak worldwide, with those against it claiming that you cannot use it for making small payments, such as those for groceries or chocolates.
However, David Knezic, a coder from Switzerland, is working to prove these detractors wrong with his invention. He has designed the candy dispenser in such a way that customers can only use BTC as the payment method.
According to Knezic, the invention was aimed at proving that machines can easily accept Bitcoin payments.
How it Works
Knezic demonstrated the process in a video, posted on his Twitter page. You just have to scan the QR code of the product and then send the required amount of Bitcoins, authorizing it with Touch ID.
You then place your hand on the dispenser opening and get the number of candies for the paid amount.
The candy dispenser is enabled by USB, which makes use of an Arduino Micro. This, in turn, is controlled using a Raspberry Pi, which runs the utility.
The Raspberry Pi makes a note of any incoming transaction from the blockchain.info database. It then dispenses the correct number of candies according to the BTC received.
The Pending Issues
However, though the candy dispenser has been successful in receiving payment in the form of Bitcoins, there are still other issues that need to be sorted.
One of the major problems with the use of Bitcoins is that the transaction fees are very high. Another problem is that the speed of processing Bitcoin payments is quite slow.
But it’s worth noting that with the use of the soft fork Segwit, the transaction charges for Bitcoin have been considerably lowered.
Bitcoin transactions are getting slowed down these days as the block size limit is being reached. However, with the SegWit fork, the platform is becoming more scalable and faster.
It basically makes changes to which data is being stored in the block and which ones are segregated, and this has solved the size limitation issues of Bitcoins.
To put it more simply, Segwit is offering another fast lane for the Bitcoin highway, so that more traffic can be accommodated. Therefore, you no longer have to wait long for your turn, and the transactions are faster.
Knezic now suggests that he is working on another system using the Bitcoin Lightning Network, which will offer a viable alternative and overcome the shortcomings.
It is still in the nascent stage, but it can provide an answer to Bitcoin’s shortcomings.
This network forms a second layer on most of the blockchains of the cryptocurrency. This enables faster transactions as well as better or reduced transaction rates.
At present, the network can only help transactions equaling an amount of $150,000.
Apart from Knezic’s project, many other companies have conducted a lot of important work connected with the Lightning Network technology.
Implementing Lightning Network
When the Lightning Network is also implemented, it will be possible for Bitcoins to be used for regular payments.
It is still in the beta stage, but it will help create a more scalable version for Bitcoin, the world’s oldest and biggest cryptocurrency.
Today, more than a thousand lightning nodes are running this software and most of them are running at a loss. However, there is the motivation of finally being able to make Bitcoins more affordable.
Anyone having technical skills and some Bitcoins will be able to run the Lightning channels, but it is difficult to offer a viable service with efficient payment routings and liquidity.