Blockchain as a completely new payment system – Avalanche from Cornell University for next chapter in Blockchain industry?
Bitcoin and cryptocurrencies in general seem to gain corporate attention now as a hedge to a possible inflation scenario and for payment providers to get a market share of possible future crypto payment systems. Big players are especially JP Morgan who entered exploring trading business, Square Capital, Facebook (Libra), and recently PayPal.
Bitcoin: limited transaction capacity
For sure: a problem for Bitcoin is a limited transaction capacity, it’s not possible for Bitcoin to scale like Visa while providing a decentralized network. Same goes for Ethereum, which is partially similar to Bitcoin but offers to create unique assets on it (which are also limited to Ethereum features because it’s also run on the Ethereum platform).
So far, Bitcoin and Ethereum are working and Bitcoin is well known for its success history from few cents to 20k USD in just 10 years and a speculation that Bitcoin can get digital gold. A few years later, Ethereum (ETH) arrived also successfully.
But Bitcoin and Ethereum aren’t processing many transactions per second currently (Bitcoin 12 tx/s and Ethereum 20 tx/s). That is not much and won’t be enough if such a platform should serve as a global network used by almost everyone as a payment system or for business purposes (industry).
How to solve limited scalability?
It was for a long time discussed internally how to solve scaling (processing more transactions per second) for Bitcoin and Ethereum and quite a few startups are currently trying to solve these problems and try to develop new currencies.
I was coming across Avalanche (a project started recently) when I was reading about new blockchain projects in 2020. Avalanche was launched in a decentralized way by Cornell University Prof. Emin Gün Sirer making progress to achieve a speed similar to Visa by using a novel consensus mechanism to confirm transactions.
Different computer scientists have investigated Avalanche’s approach and confirmed it when it was published initially. Some computer scientists even call it the next big step in crypto after Bitcoin and Ethereum.
Avalanche was started in August 2020 and has proven to be working as promised by Cornell University developer Emin Gün Sirer. Currently, Avalanche is searching partnerships because it’s still very unknown. Blockchain business is moving forward very fast and Avalanche has a high chance to be leading internally.
Maybe someone has already heard from Avalanche (AVAX) here or bought and used it?
Have you considered investing in tulip bulbs?
No, I've never considered investing in tulip bulbs because tulip bulbs are not a capped asset ;)
OK, how about Beanie Babies then? They are a capped asset. ;-)
Beanie Babies are much better than tulip bulbs (as a store of value) but it's not really possible to use Beanie Babies as a currency to pay online because it's very difficult to do online transfers.
Much more important if you want to transfer large sums: Crypto currencies like Bitcoin can transfer millions of Dollars while the same sum in form of Beanie Babies would be horribly expensive and difficult to transfer. And you need a location to store them....
I don’t think many people understand Bitcoin. I barely kind of do but I’m bullish. Don’t need to understand how it works.
Yes, understanding Bitcoin is not easy. If you want to understand it and have time to read a book, I would recommend "Mastering Bitcoin: Unlocking Digital Cryptocurrencies" from Andreas Antonopoulos. It's a very good and detailed book but partially very technical.
Quite an impressive post. The blockchain is a great technology that collects all information in a place. There are so many companies who required to hire blockchain consulting for their business as they help businesses to evaluate applications for new tools and technologies.
Blockchain technology will get more attention, especially with what we are seeing in the crypto market at the moment. More and more people are getting a glimpse of its real-world solutions, which is pushing other industries to consider partnering or merging with their current technologies or systems. More than one article on this subject has already been released on the coinspeaker website. They argue that the blockchain has a great future as a payment system due to the active development of cryptocurrency. I think this is the future.
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