![]() ![]() This is in order to achieve instant transactions and complete that transaction. That collateralization is required because flexa is essentially advancing that fiat to the merchant. The utility of Amp token is to temporarily collateralize cryptocurrency transactions when they are waiting to be confirmed on the blockchain. AMP can be bought and sold for fiat currency or other digital currencies and is listed on Gemini, the exchange owned by the Winklevoss twins. However, the flexa coin could not be integrated to the functions that AMP is be today so it had to destroy its own ownership of flexa coin.ĪMP is built on Ethereum in accordance with the ERC20 standard for tokens. This is why some people know it as the flexa coin until today. AMP is the new token and staking platform that has been designed to support instant and verifiable collateral of any type of value transfer. In September 2020, flexa developed in closed partnership with consensys AMP. Add to that, the fees that users need to bear at the end of each month when it comes to daily uses. Imagine being at the supermarket and have to wait 20 minutes for the transaction to be completed. This is why technically bitcoin is not the best solution when it comes to fast transactions. The fee decides which transaction gets the priority in the 1 Mb block, and miners prioritize transactions with higher fees attached to them. This is happening because there is only a limited number of miners and only a limited number of transactions can be processed in the 1Mb block size of Bitcoin. So according to Coinsutra, a bitcoin transaction can take anywhere from 1 to 60 minutes or even a day or two. Let me break this down to you in case you do not know. Bitcoin cannot replace fiat simply because of the amount of time it requires for the transaction to be completed. Let’s use the number one most known cryptocurrency around the world, bitcoin, in our example. It is not easy for any coin to just replace fiat for many reasons. 4.The amount of time required for a transaction to be completed Therefore, decentralization is another goal to be achieved by Flexa. Do you all like the idea that your bank can know every little spending you do? Or if not your bank then your partner, trying to surprise them with a nice gift but can’t because the transaction will be shown and with the exact store you made your purchase from. This, from the customer perspective now, might not always be good. However, Visa, Master card, and other cards that allow crypto payments still require another layer of system that is centralized. This is because it is something completely new because even though we have seen some payment providers such us Visa adding cryptos as a payment method it is still not widely acceptable from most merchants. 2.Crypto payments acceptance from merchantsĮven if the blockchain could solve card fraud and lower transaction fees, which they can, it is difficult for merchants to adapt this payment system. In theory, blockchain and cryptos can solve the issues stated above and reduce transaction costs. This is where the Blockchain ecosystem steps in. In fact, big companies like Costco and Walmart pay billions of dollars per year for the transaction costs to their payment providers. This is why some small places might have a minimum amount of charge when it comes to accepting card payments. This fee is usually somewhere around 3-4% of the entire transaction. Secondly, merchants are paying pretty high fees to their payment providers. was seeing about $11 billion worth of losses due to card fraud in 2020 only. Merchants’ most common issues are card fraud and transaction costs.įirstly, to give you an idea of how important this is, the U.S. ![]()
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