BitPay Launches Payment Protocol Support

Bitcoin payment processor BitPay has launched Bitcoin protocol support, designed to simplify the Bitcoin transaction process for both merchants and customers.

Below is the official statement from BitPay explaining the new protocol:

Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term to BitPay merchants just got a lot easier. Today, we are launching support for the Bitcoin Payment Protocol

The Bitcoin Payment Protocol (as specified in BIPs 70 - 73) eliminates a lot of human error in making a bitcoin payment. A user can just click on a payment link, or scan a QR code, and the wallet software offers two simple choices to the user, pay or don’t pay. The user no longer has to copy the address and amount into their wallet.

Native Refund Address Support

With the Payment Protocol, the wallet supplies a refund address along with the payment. This eliminates another potential source of error in refund situations. This approach to refunds works on the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term, with any wallet software, and does not require the buyers to have a bitpay account.

Secure, Signed Payment Requests

The payment protocol supports optional SSL signatures (technically X.509 signatures) on payment requests. This offers certainty to users that they are sending their payment to the intended recipient (all BitPay payment requests are signed). When using a wallet that supports the payment protocol (currently Bitcoin-QT and the Android Bitcoin Wallet), you will immediately notice that your wallet tells you that BitPay is requesting a payment.

User Friendly QR Codes (BIP 73)

BitPay also supports BIP-73, which considerably improves the usability of QR codes for Bitcoin payments. BIP-73 reduces the information required to be embedded in a payment request QR code, reducing their density. Less dense QR codes are easier to use in low light situations or from longer distances. These lower density QR codes are also normal HTTP URLs, offering an opportunity to provide additional information and instructions to users of devices that don’t already have a wallet installed. You can toggle between these two QR codes by clicking or tapping on the QR code in our current invoice.

There are now two different versions of the QR code on BitPay invoices, one that is backward compatible and more dense, and one that is exclusively for use with payment protocol compatible wallets and is less dense. You can toggle between these two QR codes by clicking or tapping on the QR code on a BitPay invoice.

Direct Payment Communication

Perhaps the most exciting thing about the payment protocol is that it eliminates the need to use the mesh network for communicating a payment from sender to recipient.

The Bitcoin mesh network currently serves two purposes: communicating payments from sender to recipient and communicating payments from originator to miners. By communicating payments directly from sender to recipient, the mesh network can be used exclusively for communicating payments from originator to miners. The network is then free to propagate or ignore transactions without adversely affecting the communications between sender and recipient. This allows for the emergence of a true market in transaction fees. And by reducing the load on the mesh network to just those transactions which are profitable for miners, it improves Bitcoin’s scalability.

Source: BitPay