When trying to discuss the ability of the blockchain to compete with payment networks such as Visa or MasterCard, many people quote that Visa processes 24,000 transactions per second (TPS). However, this is not even close to the actual number and is based on Visa’s marketing department doing its job to strengthen the payment processor’s market position. The actual number is only around 1,700 tps, which is easily determined by taking the number of transactions per day—reportedly 150 million—and dividing by seconds. Given the facts, cryptocurrency networks are already well equipped to be faster than Visa or MasterCard.
A simple tool is available on the London Bitcoin SV meetup site that allows everyone to see exactly what transaction speeds exist. By plugging in known data for transaction sizes and block sizes, it’s possible to determine how far along blockchains are in being able to process data.
For example, a block size of 512 megabytes (MB) and an average transaction size of 250 bytes yields a throughput of 2,438 TPS. Given what has already been proven to be the working average of the Visa network, most blockchains are already able to work faster than credit card networks.
Add to this the fact that Bitcoin SV (BSV)—the only blockchain that still adheres to the original Bitcoin design—has already shown that block sizes can easily exceed 103MB, and it becomes evident that BSV is equipped more than others to handle significant amounts of simultaneous transactions. Coupled with the fact that the transactions are handled on-chain—not off-chain, such as with Bitcoin Core’s (BTC) Lightning Network—and what is created is a completely intact, immutable and transparent network that can fit any business environment.
There are other benefits, as well, that should definitely be considered. Credit card transactions typically carry fees that range from 3-7% of the transaction cost. This adds up, especially in jurisdictions where agreements have prevented retailers form tacking on the fee to the price of an item to cover the loss. On the other hand, fees associated with crypto transactions are extremely low—so low that NOT accepting crypto in a retail environment should be a crime—and even more so with BSV. A transaction on BSV will typically cost around $0.0002485, regardless of the amount. A $20-transaction, approximately $0.0002485. An $8,000-transaction, approximately $0.0002485.
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