Tech 7 June 2018Cecille de Jesus
What the ‘Miner’s Choice’ initiative means for Bitcoin Cash and the micro-economy
Bitcoin Cash can establish itself for daily purchases in micro-economy marketplaces.
The initiative would entice and incentivize the tokenization of assets, or colored coins on Bitcoin Cash, propelling the use of smart contracts to build applications involving non-monetary transactions on the chain.
Those who want their transactions processed immediately can choose from the fees miners offer, and those who are not in a rush can avail of free transactions. Offering this freedom of choice when it comes to fee schedules would attract more merchants and individuals to use the blockchain, increasing the flow of paid transactions. If a business that regularly sends transactions uses BCH to make their transfers, they can avail of the free transactions from time-to-time. This could serve as an incentive for using the system.
“Users will have more choice about how much (if anything) they wish to pay for sending a BCH transaction, depending on the speed they want. If a user wants an instant transaction, the user can choose from a range of small fees made offered by miners. But if a user is willing to wait perhaps 30-40 minutes for a transaction to be added to a block, the user can elect zero fee.”
At the same time, miners retain control over how much free transactions they will accept per block, and the cost lost to free transactions is very small compared to the benefits of the initiative.
Dust limit removal and the micro-economy
“Dust,” is the very small amount that is below the minimum transaction amount, and is lower than the fee it takes to send it out. With the limit, this means that there are several wallets in existence that have small amounts “stuck” in them. In order to get those out, a user has to add more in order to meet the minimum transaction amount before sending the combined amount elsewhere.
Under the Miner’s Choice initiative, the current minimum transaction limit of 546 satoshis (0.00000546 BCH) is dropped down to 1 satoshi (0.00000001 BCH). At current trading rates, this is worth pretty much nothing ($0.000011377). But this amount could reach a substantial value as BCH rises, and can mean a lot for micro-payments.
Removing this limit will help BCH gain widespread use within the micro-economy. In the Philippines, for example, $0.10 is worth over PHP 5.00. In the country, small vendors within the micro-economy repackage and sell products in smaller amounts than their mass-produced portions: cooking oil is repacked in sachets, drinking water, etc. With PHP 5, an individual can buy any of these: bread, candy, biscuits, crackers, salt, pepper—the list goes on. At $0.20 or PHP 10, one can buy an egg, get a jeepney ride home (around five kilometers) from the BCH jeepney, or buy spices or items from the market that can help make some simple meals.
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.
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