Nocks, Gulden Drop Bitcoin Support, Cite Bad Reputation and Slow Transactions

Nocks, an exchange and payment processor working closely with Gulden, has dropped Bitcoin support, citing the cryptocurrency’s bad reputation and slow confirmation times.

According to a Medium post by Nocks, the processor and its associated cryptocurrency, no longer wish to deal with Bitcoin’s increasingly high fees and slow confirmation times. Additionally, Gulden as a whole, while maintaining a commitment to user privacy, is seeking to move away from anonymity. As such Nocks seeks to tighten security over the kinds of users that use its service through “thorough identity checks, freeze list referencing and much more to ensure a great user-base.”

Rijk Plasman, Gulden’s founder, sees the change as an opportunity for a clean slate for the digital currency’s public perception:

“We've been standing on our own since the start. There is no such a thing as Bitcoin popularity with the general public, it's the opposite. Bitcoin has a very negative and hostile reputation, due to money laundering, hackers and black markets. That's something we and our users want to stay far away from. Of course, I am not talking about Bitcoin development, I have huge respect for the people who actually build stuff and try to improve Bitcoin. But unfortunately their community and user base is holding them back. We don't have that problem.”

Gulden is seeking to avoid being tied down to Bitcoin’s slow speeds

The integration with Bitcoin originally allowed Gulden users to seamlessly send and receive payments with users who don’t have any, eventually Bitcoin became too much of a liability. According to Roel Boer, co-founder of Nocks, this was in part because of slow confirmation times.

“About 80 to 90 percent of our Bitcoin transactions required support because the transactions took longer than an hour to either confirm or broadcast to complete a purchase,” says Boer. “So users either requested a refund or we manually processed their payment. In most cases, users pay through a third-party service which causes confirmation times up to 48 hours, something that we just can’t use in our type of business. We’re aiming for a quick settlement and direct results.”

Bitcoin’s impressive growth as the standard bearer for cryptocurrency has nonetheless been accompanied by growing pains in the form of a heavy network load and the accompanying symptoms of slower confirmation times and higher fees.

Roger Ver, a longtime advocate of increased block size scaling solutions, points out that Bitcoin’s adoption would be even greater without its currently unsolved scaling issues: