Transaction speeds – centralization vs decentralization – which will be faster?
Andrew Levine @andrarchy (CEO of The Koinos Group) and I chat about an interesting thing I noticed last week. I talk about it here (warning : only for Cinnamon/Coil users, also, fierce sheep warning) but essentially I made a transaction between two different banks that appeared to be instant.
Transaction speed was always a benefit that blockchain held over banking in my mind… and I always wondered what it might be like for retailers to get their money the moment they sold an item instead of days later from credit card companies.
Centralized Transaction Speeds
The technology that allowed this instant transaction is called the New Payments Platform – it looks amazing and as far as I can tell the banks add a bunch of funds in escrow with the Reserve Bank (which is the FSS box down the bottom).
Obviously to settle in seconds is way better than waiting 2 business days, but now your transaction needs to be authorized and confirmed by both banks and the Reserve Bank… as opposed to math and code from a blockchain.
Here is the link to the Cinnamon Video. Or, if you want to watch it right here, here is the Cinnamon embedded version:
Or, if you prefer a YouTube embed:
Also, I updated my post about being a Koinos Miner and investing in the Uniswap Liquidity Pool at this link. It includes all the financials… the fees, the earnings, the comparison to just holding Ethereum.
Decentralized Transaction Speeds
Decentralized blockchains are always going to be able to settle payments faster than multiple centralized entities, however, the more centralized the blockchain the faster the transaction. It’s a very interesting dynamic and it really helps to think of it as a spectrum that every system sits on.
Thanks reading and watching all about transaction speeds – centralization vs decentralization!
Previous blockchain content
If you’re interested in previous chats with Andrew about Koinos, check out these posts:
Institutional store of value in digital assets?
Tokenomics of Blockchains
Enterprises and Public Blockchains
Feeless Blockchain Transactions – How does it work?
Token distribution – Mining KOIN and Proof of Work
Integrating with Koinos
Smart Contracts – what are they?
A conversation with Andrew from the KOINOS Group
Here are all the good bits:
Koinos Network Socials
Koinos Group Socials
If you have any questions please feel free to either comment on this post or reply to this tweet:
Thanks so much for watching!
Please note : The above post may contain affiliate links.
Below are some product referral links that I love and will benefit us both if you’re interested.
Splinterlands – A super fun blockchain card game that I play almost every day.
Coil – A $5 USD monthly subscription fee provides you access to a ton of content and sites in a way that fairly rewards the creators of that content.
Exxp – The WordPress App to link your blog to the Hive blockchain.
NomadTask – Earn for completing online tasks like following accounts or completing reviews.