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Will there be a transaction oriented crypto that will win?

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  • 29-01-2018 3:45pm
    #1
    BrokenArrows
    Registered Users Posts: 7,500 ✭✭✭


    The original Bitcoin was released with the intention of replacing fiats with a quick transactions and low fees.

    Thats obviously failed with huge and expensive transactions times. Bitcoin is working on Lightening Network which allows transfers of coins outside of the main blockchain which will result in lower transaction times and lower fees but still not free.

    Pretty much all of the ALT's out there have drastically lower fees.

    The question is if a Coin like RaiBlocks manages to take off with zero transaction fees and instant transfer of funds and proves stability and legitimacy wont that cause a mass migration from other transaction only cryptos like Bitcoin.

    Other coins like ETH have contracts and others have physical products that they produce.

    But transaction only currencies will surely fall to the first currency to have free and instant transfer!

    Edit: As a side question, why are people still using Bitcoin anyway when the likes of ETH seem to be more stable in recent times and much lower fees. Is BTC just full of people who think Crypto == Bitcoin and following the noise in the media about the latest bitcoin rise and fall.


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    #2
    Dohnjoe
    Registered Users Posts: 17,777 ✭✭✭✭Dohnjoe


    Currently the public is unlikely to use speculative volatile digital assets as currency (unless for black market or novelty use)

    - Instability (prices can rise or fall significant amounts in short periods of time)
    - Technical issues (forks, bugs, hacks, scaling, exchange hacks, etc)
    - Unpredictable market
    - Unnecessary hurdles (converting fiat to the required crypto, instead of just buying with fiat)
    - People tend to hoard or trade speculative assets not use them as a currency (gold, equities, bonds, etc)
    - No recourse
    - High personal risk

    Payments with fiat via online, chip/pin and cc are usually fast enough for the public (acceptance within seconds), also SEPA transfers are to speed up dramatically in the future
    https://www.ppro.com/blog/instant-payments-within-sepa-region-transfers-speed-netflix/


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    #3
    BrokenArrows
    Registered Users Posts: 7,500 ✭✭✭BrokenArrows


    Yes those are all the issues. But they are mostly issues because there is so much choice, variation and mistrust in the market.

    If one single currency came into dominance that actually worked as a replacement for Fiat without any or many downsides then the price would stabalise, conversion hurdles would fall, forks wouldnt happen if the system worked, security and liability of exchanges would be required by law.

    Hoarding isnt so much an issue. People hoard fiat too.


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    #4
    moneymad
    Registered Users Posts: 882 ✭✭✭moneymad


    Dohnjoe wrote: »
    Payments with fiat via online, chip/pin and cc are usually fast enough for the public (acceptance within seconds), also SEPA transfers are to speed up dramatically in the future
    https://www.ppro.com/blog/instant-payments-within-sepa-region-transfers-speed-netflix/

    How will the likes of ripple and stellar fair now? I doubt the average investor in these technologies knew abut this.


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    #5
    h0neybadger
    Registered Users Posts: 321 ✭✭h0neybadger


    Dohnjoe wrote: »
    Currently the public is unlikely to use speculative volatile digital assets as currency (unless for black market or novelty use)

    - Instability (prices can rise or fall significant amounts in short periods of time)
    - Technical issues (forks, bugs, hacks, scaling, exchange hacks, etc)
    - Unpredictable market
    - Unnecessary hurdles (converting fiat to the required crypto, instead of just buying with fiat)
    - People tend to hoard or trade speculative assets not use them as a currency (gold, equities, bonds, etc)
    - No recourse
    - High personal risk

    Payments with fiat via online, chip/pin and cc are usually fast enough for the public (acceptance within seconds), also SEPA transfers are to speed up dramatically in the future
    https://www.ppro.com/blog/instant-payments-within-sepa-region-transfers-speed-netflix/

    Still limited to €15,000 :(


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    #6
    makeorbrake
    Registered Users Posts: 4,664 ✭✭✭makeorbrake


    moneymad wrote: »
    I doubt the average investor in these technologies knew abut this.
    The european SEPA system is advanced by comparison with the International Wire Transfer situation. I have not needed to ever bother with this until recently. However, it's been interesting to see how it works (or not!).

    Carried out one Wire Transfer - receiving bank turned around and sent back the payment, saying they didn't take transfers from third parties. I had arranged the transfer through transfermate - so it was a definite case of protectionism. Furthermore, they charged me for the privilege. Furthermore, the process is much, much slower. The terminology between International banks also varies (they could easily streamline this but I doubt they want to - best for them to leave it like this, confuse the consumer and charge them an absolute fortune).

    Waiting on a crypto wire transfer and holding my breath to see if the bank accept it. If they do, I might finally have a workable exchange account (and I've registered with a shed load of them - account status at various stages, from verified (but not functional - i.e. bank won't facilitate usd wire transfer) to everything in between.


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    #7
    makeorbrake
    Registered Users Posts: 4,664 ✭✭✭makeorbrake


    In relation to the most likely transactional coin, a lot gets talked about ethereum but I don't see any direct application of that yet in terms of it being used as a day to day currency?

    Are there examples of any of these being used on a day to day basis? Is there also a possibility that some are being bandied about as a solution a la tx time and tx cost but have not had to scale yet ...and possibly they will encounter the same problems? If not, what's different about the tech that means that they can scale and not have these issues?


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    #8
    BrokenArrows
    Registered Users Posts: 7,500 ✭✭✭BrokenArrows


    makeorbrake wrote: »
    Is there also a possibility that some are being bandied about as a solution a la tx time and tx cost but have not had to scale yet ...and possibly they will encounter the same problems? If not, what's different about the tech that means that they can scale and not have these issues?

    Well something like RaiBlocks has been benchmarked to handle 7000 transactions per second vs Bitcoin which can handle 7, yes just 7. (These numbers were taken from reddit so not sure of the source of the numbers)

    RaiBlocks hope to reach an "unlimited" number of transactions per second.

    Even 7k tps is great but still needs to be improved as its only 604 million transactions per day. For a true transaction crypto winner they need to be able to handle the global transaction quantity which will run into the billions.


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    #9
    Tinder Surprise
    Registered Users Posts: 1,462 ✭✭✭Tinder Surprise


    If lightening network lives up to the hype it will render lots of current projects useless.

    imo it has the potential to be a massive game changer and should be watched very closely.


    anyone any idea why the likes of Coinbase have not introduced a Segwit wallet yet? - this would give the project a massive shot in the arm.


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    #10
    BrokenArrows
    Registered Users Posts: 7,500 ✭✭✭BrokenArrows


    Tinder Surprise wrote: »
    If lightening network lives up to the hype it will render lots of current projects useless.

    imo it has the potential to be a massive game changer and should be watched very closely.


    anyone any idea why the likes of Coinbase have not introduced a Segwit wallet yet? - this would give the project a massive shot in the arm.

    https://blog.coinbase.com/bitcoin-segwit-update-3ab0484e4526

    Basically they think they have more important things to be doing at the moment.


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    #11
    makeorbrake
    Registered Users Posts: 4,664 ✭✭✭makeorbrake


    BrokenArrows wrote: »
    RaiBlocks hope to reach an "unlimited" number of transactions per second. Even 7k tps is great but still needs to be improved as its only 604 million transactions per day. For a true transaction crypto winner they need to be able to handle the global transaction quantity which will run into the billions.
    Surely 7k/second is enough? Visa/mastercard have a throughput of 2k/second.
    Are there any other crypto's equally capable? Any known downsides to RaiBlocks?
    Tinder Surprise wrote: »
    If lightening network lives up to the hype it will render lots of current projects useless. imo it has the potential to be a massive game changer and should be watched very closely.
    anyone any idea why the likes of Coinbase have not introduced a Segwit wallet yet? - this would give the project a massive shot in the arm.
    I was very hopeful ref. Lightning Network. However, I'm concerned that it may not be as straightforward as originally thought - and thats even if it gets delivered anytime soon (which it may not). If it is deployed and bombs, btc price will dive. We were told that Segwit would solve the tx cost/time issue in the short term. It has not done that.
    BrokenArrows wrote: »
    Basically they think they have more important things to be doing at the moment.
    They can't even change the address on my account - and have stopped communicating with me to effect that...so little wonder they can't take on segwit adoption.


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