Crypteia

Just a quick rant about “cryptocurrencies.”

The blockchain architecture is a distributed database. As such, it is slow, because the process of committing a transaction to the database is subject to network delays. The “Bitcoin” system is about to undergo a code fork as a result of disagreements between developers on the proper way to improve performance, which is currently about 6 TPS. Compare to, say, VISA – trundling along at 30K TPS.

Performance improvements are certainly possible, but IMO there is no chance it will ever support the open-ended scalability that conventional high-performance transaction systems provide. Blockchain systems are an interesting innovation for high-value, low rate applications.

As a currency? Not happening.

However, the concept is certainly useful to separate a lot of naive people from their real cash in exchange for ?.

Now as to VISA – it is trying all by itself to eliminate cash by paying merchants to refuse cash. At least it has the infrastructure.

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