Published on: September 14, 2023
BSV Blockchain Association’s engineering team has been hard at work on the upcomingLiteClient, a modular set of components that enables Simple Payment Verification (SPV) Becoming more convenient.
With the LiteClient toolbox, exchanges can verify a subset of transactions in a block throughMerkle proofs in the block header, and Check the blockchain for unspent transactions. This approach eliminates the need for service providers to run full nodes, potentially saving thousands of dollars per month.
By leveragingLiteClient infrastructure, the exchange can significantly reduce operating costs to 1% of current levels. At the same time, exchanges can still ensure efficient and secure verification of transactions.
The main advantage of the LiteClient toolbox is that the technology enables enterprises to scale based on the transaction volume of their business rather than the total capacity of the network. This scalability is critical as more and more enterprises adopt blockchain applications.
LiteClient toolbox designed for developers
At the London Blockchain Conference in May 2023, Darren Kellenschwiler, head of application development at the BSV Blockchain Association, said, The LiteClient toolbox is built with developers in mind.
"The LiteClient tools are a modular set of components built over the past few years to enable individual companies to build their own LiteClients, rather than explicitly prescribing how they should serve as a reference facility.
In the beginning, we just built the missing components of the existing system, such as a peer-to-peer network server that only listens for block headers, incorporates the monitored block headers into a database, and exposes the API so that other systems in the stack can easily modify it. Query to discover your information and thereby verify your Merkle proof. "
Kellenschwiler explained that because the toolset is modular, it can continue to expand as the industry evolves and new standards are developed. However, he added that any enterprise that interacts with the BSV blockchain network, creates transactions, and verifies other transactions can use the LiteClient toolbox.
"I think analytics companies are the exception. Analytics companies have to look at all content and categories and expose APIs. The LiteClient toolbox is not suitable for these companies, but it is very suitable for smaller companies that have a business of issuing event tickets and so on."
Cost reduction and other advantages of LiteClient toolbox
Kellenschwiler pointed out that a clear advantage of the LiteClient toolbox is its ultra-low cost, because it is much cheaper than the cost of running a full node. "Based on the current situation, the operating cost of LiteClient is only one percent of the operating cost of a full node. In the future, with the exponential growth of transaction volume, the cost of running a full node will become higher and higher."
“Currently, the cost of running a full node that processes all transactions on the network is approximately $4,000 per month. In the future, the number of transactions per second may reach tens or hundreds of thousands. Such a transaction volume will be very specialized. For business, related companies need to purchase a large amount of computer hardware storage equipment and deploy it globally. This is not what a small, specialized company that only needs to process thousands of transactions a day needs."
Kellenschwiler added that another benefit of the LiteClient toolboxis that as a peer-to-peer protocol, it can reduce regulatory risks for exchanges.
“For the past decade, the traditional way of sending Bitcoin transactions was that the recipient of the transaction generated a string of keys and associated them with a Bitcoin address. It was just a random string of characters that started with 1.
The sender of the transaction then sends a Bitcoin transaction to the network, making the payment to that address. The payee then has to go online and look up the transaction that paid them. "
To ensure that the payer correctly paid the funds to an address controlled by the exchange, it is best to use a mutually authenticated peer-to-peer communication channel, Kellenschwiler said. He also said there would also be audit benefits.
The future of LiteClient toolbox
Kellenschwiler said LiteClient’s development roadmap in the second half of 2023 will focus on properly defining the identity protocol.
"This is something the industry has been missing for a long time. Under the travel rules, it is appropriate for us to build a standard way for wallets to pass personally identifiable information to each other. And this should be built with privacy concerns in mind."
The goal is to provide the exact legal requirements for sharing information at the same time as the payment, he added. “Currently, we have enabled request-less payments onPaymail, which means anyone can pay you because your endpoint is public.
You don't have to approve this process. Anyone can pay you. We hope to introduce privacy and control mechanisms into the wallet stack and serve as a reference implementation to show how to do this. "
Currently, more than 400 projects around the world are built on the BSV blockchain. With its rock-solid protocol and ultra-high network performance, the BSV ecosystem is developing rapidly, and we look forward to more unprecedented commercial applications in the future.
- Friends who are interested in BSV blockchain development can go to our Chinese developer area:BSV blockchain