Mission Possible: Solving the Speed of Crypto Transactions
Crypto world pundits often talk about the transaction speeds of cryptocurrencies arguing that blockchains can be just as fast as the mainstream payment methods, such as Visa or Paypal. As digital currencies continue their rise in popularity, it is important to discuss whether blockchain technology has the potential of becoming the new mainstream method of payment.
Currently, the most popular cryptocurrency, Bitcoin, takes as long as one hour to confirm the transaction. This limitation of the blockchain is an obstacle at the moment. In comparison, other ledgers, such as Ripple, has an advantage of being able to process 1500 transactions per second, whereas BitcoinCash, LiteCoin and Dash able only to support around 50 to 60 transactions per second. Ethereum can only process roughly 20 and Bitcoin is the slowest with 7/second. Thus, transaction speeds across several different crypto-payment networks are cumbersome.
Bitcoin is the proof of concept for other cryptocurrencies. However, its main weakness, the idea of “limited capacity” has also increased demand for new-generation tokens. Its developers have argued the need to expand the system, which can only handle seven transactions per second, which is extremely small in comparison to thousands of transactions carried on by conventional payment services.
The traditional payment methods, that is the electronic cards, such as Visa or Mastercard, are leaders in this section with Visa being able to process 24,000 transactions per second and that is a record high in this case.
The challenge ahead of the crypto industry is not an easy one, yet there are global giants, such as PayPal, looking at a solution. PayPal counted 218 million active users during the third quarter of 2017 and is still among the most popular and well-known digital peer-to-peer platforms on the market. It is reported that PayPal filed a patent in the US designed to increase the speed of cryptocurrency payments. The main feature describes an “Expedited Virtual Currency Transaction System”, involving the use of secondary private keys to avoid delays of transactions between consumers and merchants.
Luckily, not only industry leaders are looking at solving the frictions in the speed of crypto payments. PumaPay offers a blockchain-based protocol that that gives users and businesses an alternative to use cryptocurrencies in their daily transactions at no additional costs. PumaPay aims to replace credit card payments as there is no transaction fee involved. The pull payment protocol built on the next-generation blockchain makes PumaPay a pioneer in the matter – speed of crypto transactions. Recently, Investing.com has quoted PumaPay CEO Yoav Dror in the article about the implementation of crypto payments in daily life. Yoav has pointed out the main obstacles, which is the speed of the currently available solutions, as well as what it will take for the new generation payment system to thrive.
At the end of the day, what merchants, consumers and businesses are looking for is fast and secure payments. And PumaPay, with its speed dominance could be the key to a next-generation peer-to-peer payment platform that is not only faster, but also safer.