BITCOIN MICROTRANSACTIONS – THE PROMISE AND POSSIBILITIES
Cryptocurrency succeeds when people use an application (which is running on crypto in the back end) because it is usable, not because it looks good. The perception of cryptocurrency is still that you can’t use it for too many things.
The idea is to bring transaction fees down to as close as 0 as possible, which is where microtransactions would come in. By not having every full node processing every single transactions, we could reduce transaction fees significantly.
Sidechains and hypercube chains are interesting ideas, but not an actual solution to this problem. There is a more modest approach, by solving more restricted problems.
Micropayments happen in series between two parties, for example file storage and paying for bandwidth. With multiple transactions happening through the same channel, you only need to finalize (pay transaction fee) once.
This post was published at Crypto Articles on October 20, 2014.