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Offline transactions have always been a hot topic. Whether it was to increase to security of cold wallets, or to help with the large-scale crypto adoption, offline transactions were discussed since the inception of cryptocurrencies.

Last month, GK8, the Israeli cybersecurity startup managed to raise $4 million for their offline transaction solution. The startup developed a wallet which had the best of both worlds – the security of the cold wallet and some hot wallet properties. According to representatives from the company, the project allows for “complete shielding” against hacking.

One of the most popular theories, is that after the creation of additional security layers, offline transactions can enable absolute censorship resistance for cryptocurrencies. Additionally, many experts have stated that mass adoption will be way quicker if crypto users are able to send, receive, record, sign and validate transfers without the need to be online.

Censorship resistance is not something with Satoshi Nakamoto put in bitcoin’s white paper. It has however, become a very important subject for crypto supporters.

Offline transactions are the inevitable answer

The very design of crypto transactions is against third-parties. That being said, governments make up for their inability to control blockchain protocols by instituting policies like Know-Your-Customer (KYC), Anti-Money Laundering (AML) laws, or in many cases they can simply block people’s access to cryptocurrencies.

Basically, governments are still able to censor cryptocurrencies because blockchain technology itself is maintaining interfaces with systems under government control. Centralized exchanges which accept and process fiat deposits are required to have bank accounts by law.

Governments are unable to stop people from sending and receiving cryptocurrencies, but they can force exchanges to comply with regulations like AML and KYC. That means, as long as an Internet connection is required, governments can exploit and censor as they see fit.

Some projects are currently focused on creating alternatives to the centralized ISP networks. Most of these projects are working on the deployment of mesh networks and long-range radios to act as replacements for Internet connectivity.

The developed networks are not only able to create alternative P2P infrastructures for offline crypto transactions, they can also create channels for truly decentralized and unfiltered communication that is not under the government’s control.

These so-called Mesh networks possess a unique topology that allows for all the necessary infrastructure nodes to be connected in a non-hierarchical manner. This is different from the centralized architecture of the Internet because servers there are seen as being responsible for the relay of information to and from the connected nodes.

Basically, because there is no central dependency in the mesh network, nodes are able to self-configure. If a few nodes go out, others will quickly reroute and reorganize to allow the information relay to continue without interruptions.

Mesh networks can be what the Internet could not become

A mesh network’s infrastructure looks like the earliest models of the Internet. I’s arrangement is also similar with the bitcoin blockchain and its flat network topology.

There are very rapid advancements in wireless technology and mesh networks no longer have any need to wired. Nodes will simply communicate between themselves if they are within range. Data streams will be used to send data over larger distance.

Over time, mesh networks and long-range radio technology will keep getting improvements. Access to crypto exchanges and decentralized blockchain consensus networks will be possible without any Internet connection.

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About Ian Karamanov

Based in Sofia, Bulgaria. Writing about cryptocurrency, politics, finance and esports. Keen interest in unedited history, spirituality and freedom.

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