On April, Paypal, the world’s most extensive payments network, announced a fixed levy of $4.99 per cross-border transaction. However, low fees represent only one certain benefit due to other issues severely impeding the sector’s growth.
Paypal’s move was amusingly commended by crypto enthusiasts who insisted that the high service fees charged by centralized bodies will not compete with the very low fees when using cryptocurrencies. This sentiment is deeply grounded in reality, as the fee hike helped expose the imperfections of using traditional, centralized payment operators.
Regardless, all negative press Bitcoin’s average transaction fee is under $2 and this figure remained constant regardless of the user’s location. The potential cost savings aren’t limited to bitcoin either. For example, Litecoin (LTC) processed a $99 million transaction on its network for a low fee of $0.40 on April 24.
Also, Request Network, a top 100 cryptocurrency by market cap, charged an almost negligible fee of $0.0004 per transaction.
Crypto’s management pointed out that the difference in service fee would drive cryptocurrency adoption.
An average person is comfortable with the accessible use associated with opening a bank account, using a credit or debit card for transactions anywhere in the world.
Developers must work on on-boarding platforms for using digital currencies, and crypto enthusiasts who own shops and businesses. They should consider accepting payments in digital money to drive adoption.
Even with slow development, the changes are still noticeable. Earlier, BTC manager reported which launched physical bitcoin “banknotes” in the island country on Singapore-based Tangem. The platform allowed payments to be made via a highly secure, portable wallet that is intended to be circulated instead of being used as an alternative to other crypto-wallets.
After the problem of security and adoption comes technical capability to handle thousands of payment requests on the block chain, without experiencing massive delays or abrupt shut-down. To tackle the issue, networks like Ethereum proposed a proof-of-stake algorithm as opposed to proof-of-work in addition to sophisticated protocols like sharding.
To deal with the infamous price volatility, a type of digital currency called “stablecoins,” which claimed to be backed by fiat or other physical assets like gold are being developed. Although their legitimacy remains an issue, VC-backed startups like Stably provided much-needed transparency and trust to this particular type.