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Ethereum (ETH) Lowest Fees Claimed on Decentralized Platform, Also Vitalik Buterin on the State of Ethereum

The team behind Blockonix, a decentralized exchange, has set a very major target in front of them. Crypto-verse market domination with a very attractive argument: having the lowest fees. The company promises that the platform will have top quality in being user-friendly and very low fees if their native token is used.

Ethereum Trading Exchange

The firm has made it public that if the user during the trades is not using the native exchange token then the fee will be one percent. If instead you choose to use it, will be 0.03 percent. This way the team wants to bring an environment very cost-effective in comparison to other popular platforms.

This platform is focused on trading Ethereum and Ethereum-based digital tokens and it has a worldwide reach. According to the team, the company is promoting a new wave of payment and futuristic apps that will help the clients. The exchange is fully decentralized and it does not store any of the assets of its clients.

One way of doing things, makes Blockconix stand out of other decentralized platforms. The individuals behind the exchange do not earn from the platform. The fees that are gathered by the use set to buy BDT tokens and burn. Taking it to another level, if you want to list a token in the decentralized exchange, you have to pay a 5 ETH stepping-in fee. Even these are burnt with the BDT tokens. So money is not hoisting the energy for the good team behind Blockonix but by the crypto-verse.

Ethereum Co-Founder

Vitalik Buterin – the much respected and for many role model to lead a crypto-verse project like that of Ethereum added his opinion on various topics related to the platform, decentralization and blockchain latest improvements. The thought-sharing took place during and event in San Francisco, hosted by Blockchain at Berkeley.

When asked what the mind behind Ethereum is working right now, he replied with having his hands full with the PoS and Sharding protocols.

“Recently, I am spending a lot of time working on the proof-of-stake and sharding protocols. This is what the Ethereum research community is focusing on more than anything else at this point. We think that proof-of-stake and scaling are both really important and there has been a lot of progress on improving the algorithms and the development of multiple limitations over the last couple of months, Buterin told me. I’ve also been looking at the economic analysis of transaction fees and how transaction fee algorithms can be improved to basically cut fees down and make the protocol alignment centers better and more efficient. Those are the main things I’ve been working on myself.”

When it comes to Casper Protocol, he spoke very highly and full of hype around it adding that it is truly making progress.

“I think that there has been a lot of frameworks for state channels coming out recently. The Casper protocol is getting much closer to being finalized at this point. It’s just pending review on academic analysis,”

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Crypto Exchange to Target African Market by Offering Low Transaction Fees

An “advanced and robust” trading platform is vowing to help emerging economies embrace cryptocurrencies and blockchain technology — in the hope that inclusion and education will bring economic freedom to the masses.

KuBitX claims that there is widespread reluctance to learn about crypto, compounded by a lack of knowledge and resources for those who want to discover more. The company believes this has enabled a small group of traders to dominate the market and even manipulate it at will — resulting in extreme fluctuations in cryptocurrencies.

Its white paper cites a study by Cambridge University, which suggests that Africa is home to just four percent of the world’s exchanges, even though adoption rates across the continent are on the rise. In time, KuBitX hopes its user-friendly platform will lead to the development of a diverse cryptocurrency marketplace for buyers and sellers — one that welcomes crypto enthusiasts even if they live in one of the remotest places on Earth.

Taking on market leaders

Despite being a new entrant to the cryptocurrency exchange industry, KuBitX believes its service can offer considerable service improvements when compared to the established market leaders. For example, the company claims it can process more than 12 million transactions per second — a rate which it says is well ahead of Binance and Bitfinex.

In another nod to its goal of becoming an accessible service for emerging economies, KuBitX says its transaction fees (0.05 percent) are considerably lower than its rivals.

The company has partnered with Modulus, a company providing financial software and hardware systems for exchanges, brokerages, hedge funds, financial institutions and traders.

The exchange, powered by Modulus, is planning to support fiat withdrawals and offer a mobile app, with its platform initially being available in five languages. To appeal to an international user base, KuBitX says it will offer online customer support 24 hours a day, in addition to a training platform where users can discover more about the exchange’s functionality in programs tailored to beginners, intermediate users and professionals.

When it comes to Africa, KuBitX argues that traditional banks are still struggling to reach adults who don’t have a bank account — with two out of three people across sub-Saharan Africa being unbanked. The company says the continent’s entire banking system has been hindered by a lack of financial literacy, small national markets, low incomes and political instability, but it believes that hundreds of millions of people could have a better future if they are given the chance to develop a strong financial footprint.

The exchange says it has a “huge” target market of 1.28 billion Africans to reach — and to do this, it plans to introduce channel ambassadors, whose mission is to raise awareness about cryptocurrencies and educate the public through meetup sessions. KuBitX is going to first reach out to people in Uganda, South Africa, Angola, Ghana, Zimbabwe, Nigeria and Kenya — all with the view of gaining up to 10 million users within the first three years of operation.

Suite of financial services

KuBitX says it has forged relationships with banks and payment providers to ensure that a range of services can be offered through its platform, including remittances, bill payments, fund transfers and merchant services. Customers are also going to be able to track and spend their cryptocurrencies from one account, and connect with other digital currency trading platforms.

The pre-public round of its token generation event is taking place from July 16 to August 31. Its ambassadors in flagship countries will be deployed in the third quarter of 2018, and this is also when the exchange’s soft launch will take place. KuBitX aims to go live by the last quarter of 2018, paving the way for global promotions to spread the word about its platform.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

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Reddit CTO: ‘I Think Crypto Payments Will Come Back’ To Platform

Reddit’s CTO blamed “high fees” for the platform no longer accepting Bitcoin payments in an interview May 2, but hinted they may soon return to the platform.

Speaking in an interview with Cheddar, Christopher Slowe said that developers “didn’t have time” to update the Coinbase API used to accept BTC payments.

Coinbase is in the midst of retiring its Merchant Tools and replacing them with a new operation titled Coinbase Commerce, a move which has sparked mixed reactions throughout the cryptocurrency industry.

“They’re doing a great job, they’re doing a major revitalization of their payment gateway” Slowe said.

“We just didn’t have time to upgrade our current API integration, and once the redesign… is landing, I think we’ll see crypto payments come back.”

Reddit originally halted Bitcoin acceptance at the end of March. At the time, staff pointed to “the upcoming Coinbase change” and “some bugs around the Bitcoin payment option that were affecting purchases” as the company’s motivation.

In a curious addition meanwhile, Slowe said that Bitcoin network fees were another factor.

Despite fees drifting downwards to just one satoshi per byte in recent months, the CTO gave an example of a $10 fee on a $4 transaction as being a “hard proposition to users.”

Should Bitcoin return, however, it will be together with Ethereum and Litecoin payments, Slowe added.

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Lawsuit Alleges JPMorgan Chase Overcharged Crypto Buyers

A proposed class action lawsuit has been filed against JPMorgan Chase, alleging that the bank overcharged its credit card customers when they used funds to purchase cryptocurrencies.

Brady Tucker, the plaintiff named in the April 10 complaint, said that Chase Bank incorrectly charged him $143.30 in fees and $20.61 in interest stemming from purchases made using his Chase card in January and February.

Brady is being represented by Finkelstein & Krinsk LLP, a San Diego-based law firm.

The bank was one of a number of institutions to stop allowing its customers to make such purchases using their credit cards at the beginning of February.

According to the complaint, prior to pulling the plug on all purchases, the bank began treating such expenditures as “cash advances” in January, but did so “unbeknownst to Chase’s cardholders.” Attorneys for the plaintiff alleged that Chase Bank violated the Truth in Lending Act by not disclosing the policy shift.

“The complete lack of fair notice to Chase’s cardholders caused them to unknowingly incur millions of dollars in cash advance fees and sky-high interest charges on each and every crypto purchase,” the complaint says. Chase did not charge debit card users similar fees.

The plaintiff’s lawyers – who are seeking the return of the fees as well as “additional statutory damages in the aggregate amount of $1 million” – are seeking class-action status. While the complaint says that the size of the class cannot be determined prior to discovery, it argues that this group likely consists of “hundreds or thousands of members.”

A representative for JPMorgan Chase declined to comment when reached.

JPMorgan Chase image via Shutterstock.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Vitalik Wants You to Pay to Slow Ethereum's Runaway Growth

Could adding a new fee help preserve ethereum in the long term?

It’s a contentious statement in light of the debates ongoing across blockchains over how and when users should pay to support what amount to global computing networks. However, the concept is now gaining notable momentum on ethereum, most recently from the creator of the world’s second-largest blockchain himself, Vitalik Buterin.

Buterin’s concept, described in a recent blog post, revolves around so-called “rent fees,” whereby users would be asked to pay to use the network based on how long they’d like their data to remain accessible on the blockchain.

The idea has recently seen interest generally, as ethereum developers have sought to cope with the platform’s increased adoption, and, in turn, the increased amount of data being added that all network nodes need to store.

In short, it’s a tragedy of the commons issue – if too many people use the resource for free, the network starts taking on the costs itself. And there’s plenty of evidence to suggest that there is already reason to worry.

With rising use spurred by popular apps and ICOs, notable developers, including ethereum researchers Vlad Zamfir and Phil Daian, believe the problem needs to be addressed now.

“No one likes talking about rent, but we need to have this conversation,” ethereum developer and Thiel fellow Raul Johnson recently tweeted.

“Core developers need to relay this information to the smart contract developer community ASAP to get their opinions on the matter,” he continued, adding:

“The current system as it stands is unsustainable.”

Fees, explored

Still, Buterin’s backing could be a sign that momentum might build around the idea.

So far, he has broached the idea with a pair of proposals on the subject, including a succinct possible solution he calls “a simple and principled way to compute rent fees.” And Buterin’s first proposal is as simple as its title suggests.

The idea is to compute fees based on a long-term limit on the “state,” a slice of special ethereum data that node operators need to store, which tracks who owns the current information about all apps (including user balances, who has posted so much data in, say, a Twitter replacement app and so on).

Under the proposal, state data stored in a node computer’s RAM – now about 5GB – will never be allowed to exceed 500 GB. To ensure this, users will have to pay fees based on how long their data is stored. In this way, data is kept in check, since fees will grow if storage creeps toward that limit.

One notable part of Buterin’s proposal is that he tries to incorporate a scaling change that ethereum developers have long wanted to add to the platform.

Although the most recent roadmap claims deployment is still years away, “sharding,” as it’s known, could potentially boost the amount of resources a database can handle by splitting up the data. In ethereum, the idea is, each node wouldn’t have to store all of ethereum’s historical data – just a slice of it.

“With sharding, the maximum acceptable state size would be per-shard, so the above fees would be decreased by a factor of 100,” Buterin said.

Buterin also tries to address another key problem with rent: its bad user-experience. Most rent proposals today would require users to know how long their data will need to live ahead of time, which would be prone to error.

His second proposal explores a way of quashing this annoying guessing game by letting users use their state even after it has expired. Essentially, they would prove that their state existed at a previous point in time, with the help of a cryptographic technique called a “Merkle proof.”

Deep-rooted problem

One problem with all this, though, is that fees, kind of like taxes, are never popular.

Bitcoin’s years-long debate, for example, mostly centered on fees and the trade-offs associated with them. If fees are increased, less data will be stored, making full nodes easier to run. The downside, of course, is it would make the cryptocurrency more expensive to use.

One question is whether ethereum users and developers will react the same way, arguing “the rent is too damn high.” In this way, Johnson worries that suddenly adding extra fees would alarm developers who have already deployed apps on ethereum.

Johnson argues for changes that aren’t so knee-jerk and should be phased in slowly to give developers time to adjust.

Not to mention, some believe a similar rent needs to be applied to all cryptocurrencies. Indeed, scaling problems – and the associated fees – are a problem across blockchains.

Daian went as far as to argue that bitcoin needs to apply the same model. Like ethereum, bitcoin currently doesn’t charge for the lifetime of a coin.

“Bitcoin is not free of these issues,” he said, arguing that its simpler model incentivizes state bloat in a variety of ways, “exposing users to a variety of other consequences of mis-priced storage.”

Pricing resources to the right degree is such an important area of research, Daian believes, that he and others at IC3 have set up an institution called Project Chicago dedicated to the effort.

Even if this is a lesser-explored area and researchers haven’t yet found a concrete solution, he’s optimistic.

Daian concluded:

“No cryptocurrency has figured out good models for pricing these resources thus far, and ethereum’s storage rent represents a step in the right direction towards these goals.”

Hard drive image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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PayPal Filed a Patent to Speed Up Crypto Payments, Bitcoin Dev Argues It Already Exists

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com.

PayPal has filed a patent to speed up cryptocurrency transaction times by eliminating the verification time of payments. Bitcoin expert argues that this is already made possible through existing technologies in the cryptocurrency industry.

On March 5, 2018, Cointelegraph reported that PayPal filed a patent with the US Patent and Trademark Office (USPTO) for a technology that is supposed to speed up cryptocurrency payments through the utilization of secondary wallets.

Essentially, PayPal seeks to optimize the process of settling cryptocurrency payments between merchants and buyers, on retail or e-commerce platforms. The secondary wallets of users, as described in the official patent, would allow the unique private keys of buyers and sellers to be transferred behind the scenes, to prevent every transaction from being included in blocks and broadcasted to the public Blockchain.

The patent heavily emphasized that the system of verifying transactions by including payments in blocks have limited the potential of cryptocurrencies like Bitcoin.

“In order to be sure that the Bitcoin transaction will ultimately result in a transfer of Bitcoins to the payee, the payee must wait until the mining process confirms the transaction before transferring goods and/or services to the payer. In many transaction situations, a 10 minute wait time will be too long for payers and/or payees, and those payers and/or payees will instead choose to perform the transaction using traditional payment methods rather than virtual currency. Issues like this have slowed the adoption of virtual currencies despite their advantages,” the patent read.

Bitcoin Developer Peter Todd responds

Peter Todd, a Bitcoin developer and applied cryptography consultant, stated that PayPal is trying to patent a technology that already exists in the cryptocurrency industry, developed by Opendime.

Created in 2016 by a former Bitcoin marketplace Coinkite, Opendime is a hardware Bitcoin wallet with multi-signature bank-grade security. It allows users to transfer Bitcoin with internal private keys, with the vision of enabling users to utilize Bitcoin like fiat money, such as the US dollar.

Opendime is structurally different to other hardware wallets like Trezor and Ledger, which can be reused. Opendime is a USB stick that can only be used once, like a piggy-bank. The USB stick must be destroyed to use the funds stored inside, allowing it to be used as cash.

The patented technology of PayPal and Opedime is similar in that private keys are swapped behind the scenes off-chain, in an instantaneous manner. As the Opendime team explains, “since we are putting private keys into a physical form you can trust, you can simply hand around Opendime units to move amounts around. There are no pre-defined Bitcoin amounts with Opendime either. Store as much or as little as needed.”

The process of transferring bitcoin payments with Opendime is similar to PayPal. The technology of PayPal encourages each user to transfer an entire wallet or private key associated with a predefined amount of a cryptocurrency, as the patent explains:

“The systems and methods of the present disclosure practically eliminate the amount of time the payee must wait to be sure they will receive a virtual currency payment in a virtual currency transaction by transferring to the payee private keys that are included in virtual currency wallets that are associated with predefined amounts of virtual currency that equal a payment amount identified in the virtual currency transaction.”

Can PayPal’s technology optimize cryptocurrency payments?

If PayPal’s technology can be implemented at a large commercial scale, it could allow cryptocurrency payments to be processed between merchants and buyers instantly and off-chain, eliminating large transaction fees and most importantly, long verification periods.

Recently, South Korea’s major hotel booking platform Yeogieottae has partnered with Bithumb, the country’s largest cryptocurrency exchange, to accept cryptocurrency payments. In Japan, the country’s biggest retailers such as hotel chain operator Capsule, airline Peach, and electronics retailer Bic Camera have been accepting Bitcoin payments for a while.

PayPal’s low fee and instant cryptocurrency payment processing system could allow retailers to process payments for users without having to deal with hours-long verification periods.

But, an issue could occur in the process of transferring private keys, if this settlement occurs off-chain, in a centralized manner. The patent of PayPal explicitly explained that it could rely on a payment service provider device to carry out the process of settling payments, which could lead to a centralized system overseeing the transfer of private keys.

“In a specific example, a payment service provider such as, for example, PayPal, Inc. of San Jose, Calif., may utilize a payment service provider device to perform the method 100 [PayPal’s method of transferring private keys – Cointelegraph], and in some embodiments may operate in cooperation with one or more other system providers (via their system provider devices) and/or users (via their user devices) to perform the method 100 discussed below.”

Last week, tech-focused podcast host Owen Williams revealed the findings of GDPR, which disclosed that PayPal shared sensitive financial data of its customers with more than 600 entities.

The centralization of cryptocurrency payments and private keys could lead to vulnerabilities and data selling unless PayPal’s technology can utilize non-custodial wallets and allow merchants and users to remain in full control of their private keys during the entire process.

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Over 1 Mln People Sign Up For Early Access To Robinhood’s Zero-Fees Trading Service

One of the biggest gripes in the current crypto space, especially with the most popular Bitcoin being at the helm, is the expensive fees that are part and parcel of trading. Robinhood, however, took the whole scaling issue and flipped it on its head simply by offering zero-fees.

It is a bold move by the mobile trading app, and the one that immediately challenges the hegemony of the major exchanges that currently rule the crypto space, such as Coinbase.

Coinbase and other major exchanges are not fully decentralized, and they are using their power to hold a monopoly over the space. So, when a company like Robinhood comes in, using equally centralized methods, but methods that take away this power from those at the top, perhaps this is a revolutionary idea.

Zero-fees are certainly enticing

Currently, users on Coinbase, are facing fees ranging from 0.1 percent to as high as four percent per transaction. Firstly, this is not something that Bitcoin promised when it came into existence, it was never meant to be expensive to use. However, because it became so with the network getting bust, there has to be a solution to attract those not willing to pay.

Robinhood has gone straight for this problem, and made it zero-fee, even though it will essentially be a ‘loss leader’ meaning they will not be making money off of this feature. Robinhood are more interested in growing their crypto community base, and by growing their base, they will also be taking users away from those who are profiting from the fees.

It has certainly worked in getting the hype up for cryptocurrencies as it was reported that just days after the announcement, their waiting list had swelled to over a million people who signed up for early access. If all these people on the list become clients, it will add more than 30 percent to the company’s overall user base of more than three mln.

Take from the rich

Currency, even though the crypto space is supposed to be fully decentralized and free market, the way in which the major exchanges operate cannot be described as fully decentralized. Users are essentially trading with the exchange as they keep a liquid stock of crypto coins in order to make the payments, collecting their fees. This sounds much like a central bank in many regards.

Because of this centralized nature, the exchanges can set fees and other regulations, which again sounds like a bank. And, with this control, and this hegemony over the exchange marketplaces like Coinbase have a full monopoly. However, Robinhood, while still acting as a centralized exchange, is offering something that other exchanges can’t and as such, is promising to break their control and hegemony.

Not solving the Blockchain issue

It’s only in the future when we might or might not witness the success of Robinhood and how its users above profits approach will affect the mainstream exchanges and their hold. By breaking down one of the core problems of Blockchain and taking on the fees themselves, Robinhood declares a noble mission. However, they aren’t fixing the true scaling issue.

Still, with a host of investors entering with no technical know-how of the crypto economy, being told they don’t have to pay extra fees is as good as it gets.

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Bitcoin Wallets Could Reduce Bitcoin Fees Immediately For Users, Here's How

Zebpay, the most widely utilized Bitcoin exchange and wallet platform in India, discovered that most Bitcoin wallets are utilizing inefficient methods of estimating Bitcoin fees, leading to higher fees for users. In an analytical column, the Zebpay team explained that Bitcoin exchanges and businesses tend to overpay Bitcoin fees on behalf of their users to prevent bad user experience and transactions from being stuck. Zebpay explained:

“The cost of customer support in case of a stuck transaction is higher than the actual fees of transaction. Other Bitcoin exchanges/businesses that use hosted wallets like us will try to pay higher fees competing with everyone to make sure their transaction goes through. This competition during a clogged mempool makes prediction of fees even more complicated adding to the uncertainty of block confirmations.”

Consequently, users on many wallets pay higher transaction fees than necessary to ensure their transactions are included in a block.

Over the past few weeks, with the help of BitGo Engineer Jameson Lopp and Security Expert Andreas Antonopoulos, the Zebpay engineering and development teams focused on implementing three systems: slab-wise fees, batch transactions and Segregated Witness (SegWit). These changes ensure that small transactions require lower fees while larger transactions pay higher fees.

In countries like China, India and the Philippines that process billions of dollars in remittances every year, many use Bitcoin to make such payments. This results in small transactions being made on a regular basis. However, it becomes difficult to use Bitcoin to send payments in a peer-to-peer manner if fees exceed $5. In the Philippines, minimum wage is about $7.32 per day, according to the National Wages and Productivity Commission. On a monthly basis, users in the Philippines and other countries like India send payments in the range of $200 to $400.

The slab-wise fee system allows the Zebpay wallet platform to attach fees based on the amount of the transactions rather than their size. As such, users sending transactions in the $200 to $400 can prevent from attaching $15 to $30 fees for their payments. The Zebpay team explained:

“In this way, people transacting lower amounts would pay lower fee and people transferring higher amounts would pay higher fee which would subsidize transfers of lower amounts. For smaller transactions, we use smaller number of UTXOs which result in smaller transaction size.”

Zebpay also noted that through batch transactions, the platform is able to attach a high fee for one transaction in a large batch of transactions and still have all of the transactions confirmed.

“We batch all transactions every five minutes and create one transaction that would take one input from our hot wallet and the outputs would contain all the addresses that users wanted to transfer to.”

Other wallet platforms can adopt a similar system and integrate better fee estimation methods to decrease fees and clear transactions more efficiently.

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Crypto Stimulus

Expert Blog is Cointelegraph’s new series of articles by crypto industry leaders. It covers everything from Blockchain technology and cryptocurrencies to ICO regulation and investment analysis. If you want to become our guest author and get published on Cointelegraph, please send us an email at mike@cointelegraph.com.

Much has been said lately regarding tax cuts and economic incentives to drive the global economy. When tax reforms are discussed debates are sparked about political motives, winners and losers, and the overall efficacy of the propositions. What if there were an easier and more inventive way to stimulate the economy by helping businesses and consumers? The answer has arrived in the form of cryptocurrency payments – a way to achieve economic growth, job creation, and wealth accumulation. This can all be achieved through cryptos’ peer to peer decentralized systems.

B

In order for crypto networks to become the primary technology used in global transactions, it will require a critical mass of users to achieve ubiquity and market efficiency. If we look at the volume of global digital payments in 2017, the total card transactions are likely to exceed $30 tln. If a conservative measure of 10 percent of these transactions can be processed on crypto networks, that would yield $3 tln of value transfer to businesses and consumers. Again, assuming 0.1 percent – 0.2 percent of commission on this volume, this could easily mean $3–$6 bln of commission for crypto networks annually. These numbers are staggering and one of the main reasons cryptocurrencies such as Litecoin, DASH, and Bitcoin Cash were developed. These cryptocurrencies look to democratize transactions, eliminate needless third parties, and remove the many barriers associated with sending and receiving money.

B

We can add in global remittances, which are in excess of $600 bln per year, according to Pew Global Research. The chart below, courtesy of Pew Research Global, highlights remittance payments from the United States. Looking at 10 percent of global remittance volume and 10 percent of global card transaction volume in 2017, a single cryptocurrency can reach roughly $ 6–9 bln in commissions. The integration of crypto networks for both global remittances and transactions will reduce fees, thus allowing the savings to be passed on to consumers and create more velocity of cash in the world economy. One of the beauties of crypto networks are that many of these fees can be eliminated by integrating decentralized technologies into a myriad of applications. Removal of friction along with the creation of more transaction channels will provide far more rewards than risks and should evolve into the way all transactions of this nature occur.

B

Crypto network transactions will be nearly instantaneous with little to no fees. Other advantages include the immutable Blockchain ledger which disallows double spending, credit default (for the most part), and charge backs. These issues are among the chief reasons global remittance and digital payment systems still rely on VISA, MasterCard, and American Express, because the fee that is paid to these parties is supposed to work as insurance against these occurrences. Once crypto networks become ingrained into these systems the economy will be able to reap immediate benefits. Networks will continue to optimize by growing Blockchain technologies and decentralized applications, both of which will thrive on these rails.

Issues such as cryptocurrency volatility, safety concerns, and lack of understanding are hindering widespread adoption for global remittances and digital payments. What many fail to realize is that crypto, when integrated properly, can be utilized as a hedge against currency inflation/volatility, is safer and faster than the Visa, MasterCard, and Amex, and that these currencies can be traded by the owner to generate more profits (a relatively cumbersome process with traditional fiat currencies). This is unprecedented in history, never could a business accept decentralized secured payments, see the transaction clear in minutes, and then trade the digital currency on an open exchange. This technical loop reduces redundancies and friction not only in point of sale systems, but transaction clearing and banking.

The crypto community of developers, miners, and early adopters has always focused on constant improvements, which unlike more established ecosystems can be done with relative ease and quickness. The belief in the principle of constant improvement along with open source innovation has propelled the technology to this point, but only when crypto is used in practical ways, like the areas mentioned above, will crypto truly usurp the inefficient centralized systems which are now in power. Crypto is decentralized money, controlled by the people, who will choose to use it in ways that will start providing economic stimulus. The widespread use of crypto as the primary mode of global remittances and digital transaction will be just the beginning, we will soon see entire industries reform due to this revolution in technology and money.  

The facts are apparent, the global economy would greatly benefit from the widespread implementation of this technology. Keep in mind that global remittances and digital payments are only the tip of the iceberg. Crypto is here to stay, so embrace it and start reaping the benefits now. This is truly the way to provide economic stimulus along with giving the power of money back to its users.

Bio: Richard Johnson MBA, Managing Partner Crypto Currency Mutual. He is equities and financial technology expert in the Firm’s Market Structure and Technology practice. He has 20 years of industry experience in financial markets. Prior to joining Greenwich Associates, Richard was consulting with companies focused on Bitcoin and Blockchain technology.

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Bitcoin Unconfirmed Transactions at an All Time High, Fees Surge to $17,

Bitcoin transactions have become very expensive this morning with fees rising to $17 as demand has increased considerably with the network operating at times as high as at around 49 transactions per second.

It can barely handle 1/10th of that, at 3 transactions per second. More than 200,000 transactions, therefore, are stuck, unable to move and probably won’t move until they are dropped off in around three days.

bitcoin unconfirmed transactions

These very high levels of demand have led to significant fee pressure, with on-chain transactions now becoming more expensive than any other comparable service, including Western Union.

bitcoin fees 17 dollars

According to data from 21, the recommended fee is 0.00103960 btc, currently worth nearly $20, but whether even that will get you through depends on whether others are willing to pay as much or even more.

That makes bitcoin unusable for ordinary commerce, but while some are complaining, others might not mind what they may see as pocket change following potential stupendous gains in this parabolic recent price rise.

Traders, especially, might consider it as simply the cost of doing business, specifically arbitrage. Price premiums between western exchanges have risen to as high as $2,000 at times, but recently have narrowed somewhat to just $500.

That may be due to traders buying at the lower price exchange and selling at the higher price exchange, locking-in potentially very substantial somewhat risk free profits.

A fee of $20, $100 or even $1,000 might seem like a bargain to them, but why anyone should pay such amounts to around 10 individuals known as miners when they are already paid billions through minting bitcoins does remain a bit of a mystery.

That ship, however, has sailed, with the scalability debate ended this November. As such, bitcoiners have to just keep on waiting for Lightning, which apparently has been launched but somehow does not seem to be making any difference.