Blockchain-based nanopayments company SatoshiPay has announced its partnership with the IOTA Foundation as it considers replacing bitcoin with IOTA as its settlement network.
The company said that it is seeking to replace bitcoin as its network is facing a number of issues due to stalling scalability improvements including congestions and rising fees. It added as its business model is based on frequent low-value payments, it is now considering switching to more suitable distributed ledger technology.
“We love Bitcoin for its pioneering role in the creation of our industry, but some blockchain networks it inspired have evolved faster than Bitcoin itself, so we decided to move on to superior technology,” SatoshiPay CEO Meinhard Benn said.
The IOTA network, with its unique features including zero-fee transactions and no limits on the number of transactions per second, is well suited for SatoshiPay’s future needs. With this partnership, the foundation and SatoshiPay have agreed to work on a proof-of-concept project supported by the IOTA Ecosystem Fund, combining SatoshiPay’s frictionless content payment interface with IOTA’s scalable ledger technology. The results of the joint proof-of-concept are expected to be presented next month.
“SatoshiPay pioneered the micropayment business model, while IOTA supplies the technology that makes it a reality, therefore this collaboration is a natural fit,” David Sønstebø, founder IOTA Foundation said.
SatoshiPay further said that users of the upcoming project website will be given free IOTA tokens to try out instant payments for digital content like videos, images, or downloads.
“Working with the IOTA Foundation allows us to explore bleeding edge technology with a clear focus on massive scalability. We couldn’t be more excited and expect plenty of exposure and new opportunities to open up” said Benn.
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