TAAL is lowering transaction fees for Bitcoin SV in support

VANCOUVER, British Columbia, January 7, 2020 (GLOBE NEWSWIRE) – Taal Distributed Information Technologies Inc. (formerly Squire Mining Ltd.) (CSE: TAAL) (“LANGUAGE“) Is pleased to announce that it will make the following changes to the transaction fees incurred by its cloud computing operations on the Bitcoin SV (“BSV“) Network:

  1. A reduction in the transaction acceptance fee (-blockmintxfee) from 1 satoshi / byte to 0.5 satoshis / byte.
  2. A reduction in the forwarding fee (-minrelaytxfee, which is the minimum fee required for double spending protection and forwarding a transaction) from 1 satoshi / byte to 0.25 satoshis / byte.
  3. In another but unrelated change, the restrictive limit of 25 unconfirmed ancestors is immediately increased from 25 to 50.

Joseph Chin, Chief Mining Officer and Corporate Secretary of TAAL stated, “TAAL is reducing these transaction fees as a short term policy to support the long term growth of applications that generate high volume transactions on the Bitcoin SV blockchain. This is another step in TAAL’s leadership role in supporting the use of the Bitcoin SV blockchain for large enterprise applications. We believe this move is necessary to generate high volume transactions and more overall transaction fees to keep blockchain cloud computing operations profitable for years to come. ”

Currently, the transaction fee component of the block bonus in Bitcoin SV mining represents a very small portion of the revenue generated for every BSV block successfully mined by a miner. (For reference, the BSV block bonus currently consists of a fixed subsidy amount of 12.5 coins, with a transaction fee component averaging around 0.0191 coins on January 6, 2020, according to BitInfoCharts.com data).

TAAL expects the change in transaction fees to have no significant impact on the profitability of its BSV cloud computing operations at this time and anticipates the change will encourage more enterprise blockchain applications to drive high volume BSV transactions carry out what would be profitable for greater opportunities and beneficial in the long run.

Why is TAAL changing its BSV transaction fees?
“TAAL is an advocate of changes that will allow miners to price fee structures in fiat currency alongside Satoshi units to provide certainty about future fees in contractual relationships with corporate users,” noted Stefan Matthews, CEO of TAAL.

In the Bitcoin network, transaction fees are paid to miners in order for a transaction (including data) to be added to a block and written to the blockchain. Currently, the transaction fee is expressed in the number of satoshi (the smallest divisible unit of a bitcoin) per data byte rather than a fiat currency price. Therefore, the amount of money in fiat currency of a transaction fee fluctuates due to market fluctuations in the price of coins. This fluctuation has a greater impact on applications that generate large transaction volumes on the blockchain. This is now happening on the BSV blockchain as applications use the larger data capacity of the BSV blockchain to generate transactions that write large amounts of data to the blockchain on a daily basis. For example, the BSV applications WeatherSV and Preev generate over 100,000 transactions per day.

As a result, business participants in the BSV ecosystem have recently begun to explore alternative transaction fee models that provide greater reliability for BSV business applications in fiat currency – including making deals for miners to direct the transactions of a particular application for negotiated fee rates or development of tools that allow miners to more easily customize their fees for applications.

This evolving fee market is new to Bitcoin; In the Bitcoin Core network, this was not possible due to its smaller block size and significantly higher transaction fees. This new fee marketplace has only recently been made possible by the expanded data and microtransaction options offered by BSV. This is expected to provide excellent opportunities for TAAL to take a leadership role in researching innovative fee options and finding its unique niche in BSV’s burgeoning transaction fee economy.

Additional change: Increase in the transaction ancestor limit
In addition, TAAL immediately increases the restrictive limit for unconfirmed transaction ancestors from 25 to 50 for its BSV mining. The limit of 25 ancestors was inherited from Bitcoin Core (BTC), which does not have BSV’s vision of creating a Bitcoin network with high volumes of corporate data transactions. This is a first step towards raising this limit in the BSV network. While this change has nothing to do with TAAL’s reduced BSV transaction fees, it has a similar goal of supporting corporate blockchain applications on BSV. A higher limit of 50 unconfirmed ancestors is expected to allow business applications to build longer sets of chained transactions before they are broken down into a block.

Periodic fee monitoring & future plans
TAAL is committed to periodically reviewing the lower Bitcoin SV transaction fee rates announced above in relation to fiat equivalents in order to maintain a fiat stable transaction fee rate. Providing a Fiat stable transaction fee rate is intended to help get more companies to use BSV for data applications, as large companies generally want their costs to be predictable. It is expected that TAAL will adjust its BSV transaction fee rates (currently expressed in satoshis per byte) according to market forces.

“Genesis” hard fork on Bitcoin SV – change of the standard fee rates
The Bitcoin SV network is preparing for a hard fork protocol upgrade on February 4, 2020 (code name “Genesis”). TAAL notes that one of the changes included in the Genesis hard fork beta version of the Bitcoin BSV Node software is a change in the standard fee rate to 0.5 satoshis / byte and a change in the relay fee to 0.25 Satoshis / byte is. Once this software version becomes widespread among miners, which is expected to happen in January 2020, the total fee rates will be uniform, which improves the 0 confirmation (instant transaction) properties of the Bitcoin SV network.

Precautions for BSV network participants
Until a lower relay rate becomes widespread, it is NOT safe to send transactions at a rate below the old standard rate of 1 satoshi / byte. For transactions involving two parties without trust, the fee rate should stay at 1 satoshi / byte until after the Genesis hard fork of the Bitcoin SV network (scheduled for February 4, 2020). Transactions that do not involve a counterparty can immediately benefit from the lower fee rates (e.g. data transactions from applications such as WeatherSV, which have negotiated BSV transaction fees directly with miners).

About TAAL Distributed Information Technologies Inc.
TAAL is a Canada-based technology company that, through its subsidiaries, is in the business of developing, operating and managing cloud computing data infrastructure and systems technology to transform global blockchain applications related to Bitcoin SV, Bitcoin Core and others associated SHA-256-derived digital assets to support support.

For more information please contact:

Angela Holowaychuk
President and Chief Executive Officer
Phone: +1 800-371-2809

The CSE assumes no responsibility for the adequacy or accuracy of this press release.

CAUTIONARY NOTE ON FORWARD-LOOKING INFORMATION: This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking information and statements include information on possible events that are based on assumptions about future economic conditions and options for action. Forward-looking information is necessarily based on a number of estimates and assumptions that, while believed reasonable, are subject to known and unknown risks, uncertainties and other factors that could cause actual results and future events to differ materially from those expressed or implied may differ due to such forward-looking information. These factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; uncertain and volatile stock and capital markets; Lack of available capital; future demand for Bitcoin SV and other cryptocurrencies and risks associated with reducing integration issues; technological change and obsolescence; User preferences and corporate adoption of new technologies; the expected benefits to TAAL or the users resulting from the changes in transaction fees imposed by TAAL’s cloud computing operations on the BSV network; the impact on TAAL’s financial performance (including in terms of revenue, profitability and transaction volume) resulting from changes in transaction fees imposed by TAAL’s cloud computing operation on the BSV network; the statements of the Chief Mining Officer and Corporate Secretary of TAAL; the statements of the Chairman of the Board of Directors of TAAL; Statements regarding transaction fees paid to users on the Bitcoin network (including the method by which such payments are made and expressed); Statements about participants in the FSIO ecosystem (including expected trends, preferences and behaviors); Statements relating to the Bitcoin fee marketplace, the expected impact of changes in the limit of unconfirmed transaction ancestors (on transactions or otherwise), including the related volumes of corporate data transactions; Statements regarding any review by TAAL of BSV transaction fee rates and fiat equivalents (and associated expected effects or benefits); Statements relating to Genesis (including changes, effects and dates thereof); Explanations of onward charges and secure unconfirmed transactions; and statements regarding transactions involving two parties without trust (and their transaction fees). There are no representations regarding the future development of the digital asset fee marketplace. Actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information in this press release was made as of the date of this press release and is limited by these cautionary statements and those in our ongoing disclosure documents available on SEDAR at www.sedar.com. TAAL disclaims any intention or obligation to update or revise such forward-looking information, whether as a result of new information, future events or for any other reason, unless required by law.

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