Tech 6 April 2018Ed Drake
Why Bitcoin BCH is the only blockchain capable of handling VISA-level transactions
For anyone backing cryptocurrency, the end goal is mass payment handling. The VISA network has been processing in the region of 141 billion transactions a year, and for any cryptocurrency to fulfill its potential, the technical infrastructure needs to support these volumes.
On closer inspection, Bitcoin Cash (BCH) is capable of handling the levels of transaction volumes supported by the VISA network. SegWit-Coin BTC (inaccurately referred to as Bitcoin Legacy or Core by many) in particular simply isn’t up to the job.
Breaking down the figures, the VISA network handled 4471 transactions per second in 2016. At the moment, SegWit-Coin BTC is capable of handling just 3. So it’s clear there is some way to go before the SegWit-Coin BTC blockchain could ever rise to the challenge.
This equates to $8.9 trillion in volume, and covers a bulk of consumer credit and debit card transactions from around the world, as the international benchmark for the payments sector.
Recording these transactions on the blockchain would create a staggering 78 terabytes of additional blockchain data, every year.
Even if the SegWit-Coin BTC blockchain were capable of handling a greater number of simultaneous payments, it would be limited by processing speeds, internet bandwidth, hard drive storage—multiple different factors which make it very difficult for SegWit to compete.
While there is some mileage to go before any blockchain could support the technical load of this number of transactions, there are a multiple trends moving in the right direction—and they point firmly to BCH.
Firstly, Moore’s Law suggests that in the near future, there will be sufficient processing power to handle the technical load of processing this scale of transactions, while Nielsen’s Law of internet bandwidth reflects a similar growth trend with time. Even Kryder’s Law of Hard Drive Capacity supports the idea that the technology will, ultimately, be in place to enable blockchain transaction processing at a scale to rival the VISA network.
But even with the right technology, SegWit-Coin BTC still falls down over its fatal flaw—block size. Only BCH can deliver this functionality, and only BCH has the capacity to compete at this scale in future.
Watch Chronos Crypto explain the VISA network on the Bitcoin blockchain here:
Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.
Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.
Tech 22 May 2019
China’s e-commerce firm JD.com has applied for 200 blockchain patents
JD.com, also known as Jingdong and formerly as 360Buy, is one of the leading blockchain patents applicants in the world, and is leading the way in Chinese blockchain patents.
Tech 22 May 2019
ABN AMRO ditches BTC wallet, but eyes blockchain trade inventory system
ABN AMRO got the message that nobody wanted their BTC custodial wallet, so they’ll be working on a blockchain inventory instead.
Tech 22 May 2019
Calastone debuts world’s largest blockchain financial services system
Calastone has launched what they claim is the biggest blockchain for financial service organizations.