So, at last we found a startup that build their project to free the blockchain technology to the real world. CommerceBlock brings us a complete infrastructure to decentralize finance over the public public blockchain as the base layer network, like Bitcoin, Ethereum, Litecoin network and other decentralized ledger technology (DLT). And this is the great aspect of it: on the top of that layer built the second layer network, consist of Lightning Network and Sidechains. In the last top layer there is Application Layer, where the CommerceBlock API is run.
“We are the first ICO with a BIP175. I think that is what makes us stand from the crowd,” says Nicholas Gregory, CEO of CommerceBlock via Telegram, Tuesday (17/10).
CommerceBlock is using the BIP175 on their system. This proposal is utilizing hierarchical deterministic wallets as described in BIP-0032 and the “Purpose Field” in BIP-0043, this document specifies the multiparty pay-to-contract key derivation scheme outlined by Ilja Gerhardt and Timo Hanke. BIP-0032 providing a consistent way for preexisting wallet developers to implement the specification.
The protocol is constructed in such a way that all parties have cryptographic proof of both who is being paid and for what. Using the technique described in this BIP, an address can be provably derived from the terms of a contract and the payee’s public key. This derivation scheme does not bloat the UTXO and is completely hidden to network participants; the derived address looks like any other P2(W)PKH or P2(W)SH address. Redemption of the funds requires knowledge of the contract and the payee’s private key.
Gregory says, instead using the new private blockchain that has high risk, we use the existing public blockchain. And we already have oboarded clients. With bitcon blockchain for example, we can use our token, called CBT on bitcoin with RSK (rootstock).
The Lightning Network itself is an improvement step of bitcoin blockchain ecosystem, that have not done yet. But CommerceBlock bring it before us. The technology improve upon the process by which transactions are validated. Currently, the process makes use of mining rigs, requiring that computers solve complicated math problems before the transactions can be recorded on the blockchain ledger. Because of the computing power required, a single transaction can take up to an hour to confirm. With Lightning Network, this process would be significantly sped up.
This also enabling off chain smart contract platform built using federated sidechains. The idea of the sidechain is you can innovate and design your solution freely in the sidechains. These sidechains are independent, if they are failed or hacked, they won’t damage other chains. So damage will be limited within that chain, for that reason you can be less conservative.
The Lightning Network would require that participants agree to transact on a separate, offline channel, and then the blockchain would update to reflect the external transaction. Thus, the middleman of the mining rig or digital wallet provider could be skipped entirely.
The developers of the network have indicated that its speed would enable it to “be used at retail point-of-sale terminals, with user device-to-device transactions, or anywhere instant payments are needed.” Lightning would help business entity to become competitive with other instant payment platforms and that it could revolutionize the way that peer-to-peer payments are transacted.
“The CommerceBlock APIs and SDKs will provide a wide array of functionality to users in the form of well-tested libraries and highly available (HA) services. The exposed libraries can interact directly with base layer public blockchains, layered protocols such as the Lightning Network and Sidechains as well as embedded consensus systems. Specifically, the CommerceBlock API will allow users to construct zero-knowledge in-voices, conduct multiparty escrow, engage in templated in-channel contracts on the lightning network issue assets and utilise other carefully selected advanced smart contracting techniques found in peer-reviewed research,” Gregory says.
For customers they already have a live invoice platform build on our unique technology based on BIP175. Feel free to look around in trade.commerceblock.com. However most of theirs customers are business. They have a real estate company that want to use our network to run off-chain smart contracts and a few hedge funds.
In real world this how CommerceBlock by implementing what of their product, tradeflow templates. Imagine we want to do a trade, for example have a shipment of wine sent from France to China. They are multiple steps in the process: Receive money in Escrow; load shipment; shipment arrive in china; authorites in china approve shipment; deliver wine; release money from escrow.
“We would model above as a smart contract in our sidechain. Making it a template means customers can change details and this can be re-used. By having this run off chain, customers still have their privacy, unlike the current Ethereum model,” Gregory says.
Additionally, CommerceBlock want to provide commercial banking service for all. People around the world now have access to commercial banking services via commerce block. “However we see mainly small business wanting to use our services,” said Gregory.
For more information
Company name – Commerceblock
Website – commerceblock.com
Whitepaper – English
Bitcointalk – Announcement
Twitter – @commerceblock
Facebook – @CommerceBlock
Telegram – Chanel
Reddit – r/commerceblock
Note : This is a paid press release please read here – Press Release