Use Bitcoin as cash to fix transaction malleability

Transaction malleability is a new-old Bitcoin issue that negatively affects the perception of cryptocurrencies in general as it is believed to create problems for the network. But contrary to popular belief, there is a simple solution addresses this concern.

Transaction malleability allows someone to change a Bitcoin transaction’s unique ID before it’s confirmed on the network, which, in effect, makes it possible for the person to pretend that the transaction didn’t happen. This issue has been cited by the now-defunct digital currency exchange Mt. Gox as the reason why it suspended Bitcoin withdrawals in 2014, and was also mentioned as the basis of attacks against many digital currency platforms.

Complicated proposals have been made to “fix” this issue. SegWit, for instance, promises to solve transaction malleability by not “taking into account signatures when calculating the transaction’s fingerprint.” But why settle on complex and convoluted methods, when the answer is simple: use Bitcoin as a cash system.

“Once we move past the unfounded FUD [fear, uncertainty and doubt] that has been oversold as a scaling issue (and seems more to be a method to extract value from Bitcoin into Alt-Coins) we start to see that Bitcoin was designed to work as cash and when it is used this way, it works best,” Dr. Craig Wright, chief scientist of nChain, wrote in a blog post.