Understand the implications of Bitcoin's downfall in El Salvador. Learn about the failed economic bet and its impact on the country's financial stability.
Bitcoin is a great alternative to something like Western Union that charges high transaction fees. It’s time to transmit is comparable to a traditional back wire, but days faster than an EFT.
Everybody knows Bitcoin is too slow to process point of sale transactions on-chain but there are other Blockchain solutions that can do it. Another user mentioned the lightning network which still actually is Bitcoin but it’s another layer.
Also, I’ve just ignored the environmental impact of Bitcoin, which probably needs to move away from proof of work, or some other solution is required to lower the every requirements.
the lightning network still uses the blockchain, just less. it’s acts like an immutable public bar tab you can’t default on. once you have spent enough with another person that it is worth them conducting the transaction on chain then it does it. usually when fees are low too.
That is an extremely simplified explanation of how it works though, it is more complex than that.
Edit: another analogy i have just read is it’s like cashing in at a casino. you put some money in the house, go in and transact with loads of people, then when it’s advantageous you can cash out and get your BTC on chain; to the house (the blockchain) that is two transactions, cash in and then out, rather than a transaction for everyone you exchanged with on the network. that’s probs a better analogy than the bar tab one… but again, oversimplified
“Bitcoin is great if you don’t use the block chain”
That’s what you just said. So why even use it in the first place?
Bitcoin is a great alternative to something like Western Union that charges high transaction fees. It’s time to transmit is comparable to a traditional back wire, but days faster than an EFT.
Everybody knows Bitcoin is too slow to process point of sale transactions on-chain but there are other Blockchain solutions that can do it. Another user mentioned the lightning network which still actually is Bitcoin but it’s another layer.
Also, I’ve just ignored the environmental impact of Bitcoin, which probably needs to move away from proof of work, or some other solution is required to lower the every requirements.
the lightning network still uses the blockchain, just less. it’s acts like an immutable public bar tab you can’t default on. once you have spent enough with another person that it is worth them conducting the transaction on chain then it does it. usually when fees are low too.
That is an extremely simplified explanation of how it works though, it is more complex than that.
Edit: another analogy i have just read is it’s like cashing in at a casino. you put some money in the house, go in and transact with loads of people, then when it’s advantageous you can cash out and get your BTC on chain; to the house (the blockchain) that is two transactions, cash in and then out, rather than a transaction for everyone you exchanged with on the network. that’s probs a better analogy than the bar tab one… but again, oversimplified