According to the article, Overstock is performing all the transactions in their own private system, with hashes periodically posted to the actual Bitcoin blockchain for transparency purposes, and regular proofs of state.
The added transparency IS enabled by the Bitcoin blockchain, and this is commendable, but the units issued by Overstock do not appear to be actually circulating on the Bitcoin blockchain itself.
It's an important distinction. We're working on this problem at my own company (Stash).
According to the article, Overstock is performing all the transactions in their own private system, with hashes periodically posted to the actual Bitcoin blockchain for transparency purposes, and regular proofs of state.
The added transparency IS enabled by the Bitcoin blockchain, and this is commendable, but the units issued by Overstock do not appear to be actually circulating on the Bitcoin blockchain itself.
It's an important distinction. We're working on this problem at my own company (Stash).