Counterparty, a platform developing an Ethereum Virtual Machine port for the Bitcoin blockchain, has combined forces with Storj, a decentralized cloud storage blockchain startup, to develop payment channel technology for use on the Counterparty network. Storj has developed the initial proof of concept to utilize such technology with Counterparty tokens.
Payment channel technology powers the upcoming Lightning Network and is meant to enable low-cost, almost instantaneous Bitcoin micropayments. In its current state, the technology will facilitate unidirectional payment channels, where Storj and other Counterparty users can stream payments in SJCX or other assets to each other.
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“Payment channels allow for instant, ‘streaming’ payments of SJCX, which is a Counterparty token, in exchange for storage space on our network.” explained Shawn Wilkinson, CEO of Storj.
This development is the crucial first step in Counterparty’s long-time stated goal of enabling bidirectional micropayments for Counterparty assets in return for Bitcoin or other Counterparty assets. Such payments, while eventually settled on the Bitcoin blockchain, will not be subject to Bitcoin’s ten minute block time while being transacted. Storj plans to beta test this technology during the third quarter of this year, according to Wilkinson.
“We’re excited about this development,” added Counterparty lead developer Ruben De Vries, “and appreciate the initiative Storj took here. This is a huge step forward that will truly allow for rapid, almost frictionless Counterparty token payments, as well as eventual use of Counterparty tokens on the Lightning Network.”