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Issues on the cryptocurrency swipe fee

09/06/2018
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  • Cryptocurrency
  • trading
  • buying
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How cryptocurrency transactions are made

The blockchain technology has gained great popularity because of its reliability. No one will be able to change the data on the amount stored in the wallet or make a transaction without the permission of its owner. But you have to pay for such a service.

When the buyer in the store pays via the VISA card, the system server makes changes to the balance of his/her personal account. This ends the operation, and the financial company monitors its reliability. For the cryptocurrency, an entirely different algorithm of actions is assumed. Here, several encrypted blocks change, that requires more time and costs of productive capacity.

That is, the miners not only decrypt the blocks, they simultaneously provide technical support for the entire system. Therefore, the cost of performing operations is a floating value. The owner of the wallet himself determines how much he is willing to give for the performance of transactions. If the price is too high, then he/she will lose additional funds. If it proves to be insufficient, the payment will not work. There are special services in Blockchain, which allows you to use BTC to USD calculator, and it explores such issues as:

  • load on the network;
  • the number of applications pending;
  • the average cost of translation.

It is noteworthy that the amount of funds transferred does not matter. There is no importance for the system, because of what amount to change the data chain for users. Definitely, the commission is accrued not as a percentage of the transaction, but as a fixed amount.

Issues on bitcoin transfer

The above-mentioned shows the complexity of performing payments in bitcoins. If you buy a computer for 1000 pounds or a hamburger for 1 pound, the overhead cost will be the same. But even at the best, transfer of funds will be expected for 10-30 minutes. In less time, the system simply cannot make all the calculations.

As practice shows, the money transfer through the VISA card takes up to 3500 times less time than through Blockchain. This imperfection of the algorithm was noticed long ago. It was an obstacle to further development. The community attempted to solve the problem by putting in fork bitcoin - Litecoin. This reduced the processing time to one minute. But this was not enough for modern society either.

Then the ripple developers decided to cope with this problem. According to their forecasts, even in 2018, one transaction with this coin will take no more than three seconds. This is due to the fact that the calculations will take less time, the transfer fee will also decrease.

Why the blockchain will remain popular

Although the new technology can hardly be called perfect, it is firmly entrenched in the financial community. To confirm these words, it is enough to look at Litecoin or ether to USD calculator, which allows you to check the graph for a long period of time.

Its price after the rapid growth has decreased but remains high. The reason is that this system is able to guarantee the safety of data without monitoring. Imagine how much resources will be saved if payments in stores can be carried out without intermediaries. Technology is developing, computing capacity is growing every year.

Perhaps in a few years, it will be blockchain that will ensure the preservation of the payments register in banks, be responsible for the safety of medical information or provide property guarantees.

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