Dash, a privacy-centric cryptocurrency that offers near instantaneous transactions, has developed a beverage vending machine that can secure a transaction without the need for a block confirmation. Dash enthusiasts believe the instant transaction and confirmation feature holds great potential for point-of-sale retailers.
Dash enthusiast Dan Handler will be taking the machine to the d10e Conference in San Francisco, Calif. this month, July 19 to 20, where he hopes to generate interest in the instant transaction and confirmation capabilities of Dash’s InstantSend technology, previously called InstantX.
Instant Transactions Are Now Reality
“The Dash N’ Drink makes (instant transactions) real, right in front of your eyes,” Handler told CCN.com. “You scan the QR code on the screen, and a can of soda pops out. Instantly and safely. It’s no longer a hypothetical discussion.”
The “Dash N’ Drink” machine was created by Dustin Eward and Jeremy Maus, two long-time Dash users.
The main purpose of the Dash N’ Drink machine, which debuted at the North American Bitcoin Conference in January, is to demonstrate Dash’s InstantSend technology.
How It Works
InstantSend uses Dash’s second-tier masternode network to secure a transaction. The network-wide locking prevents double-spend attempts. The transaction cannot be reversed either, similar to blockchain inclusion.
According to Handler, the Dash masternode network detects transactions marked “InstantSend.”
The network issues a lock on the input to the transaction and broadcasts a “confirmed tx” message to the network. This input cannot be used for any other transaction.
“The reality is that within two seconds, a transaction can be considered final,” Handler said. “What this means to a vendor is that for the first time, crypto can compete with the credit card network.”
An Advantage For Retail Merchants
The technology allows Dash to compete with credit cards for point-of-sale transactions without relying on a centralized authority. Dash enthusiasts believe the technology will provide merchants an advantage over other payment methods as it does not rely on a third-party processor to authorize transactions.
Handler added, “The retail vendor can give physical merchandise to the buyer and be assured that he will be paid. This technology is coded into the protocol, not an add-on by a third party.”
Consumers Also Benefit
InstantSend also provides the purchaser the benefit of having transactions confirmed in a few seconds as opposed to other point-of-sale systems.
Bitcoin and other cryptocurrency transactions, for instance, can require a user to wait for confirmations, a reported average of 10 minutes for a single confirmation, before the receiver can consider the transaction valid. The wait can be even lengthier when the system is backlogged with activity.
“Who wants to wait minutes for a drink from a vending machine?” Handler asks.
Images from Dash.