Even as Bitcoin price soared to beyond an high of $20,000 Sunday according to CoinMarketCap data, traders and dealers face a common impediment to using the coin: high priced transactions.
For instance, the cost of a single transaction is $19.99 according to Bitcoinfees.info website. That is punitive for mass adoption of Bitcoin and to small traders who want to buy simple and daily items like a cup of coffee or a pizza. In fact, the high fees make some opt to use other cryptocurrencies.
Founder of the famous end-to-end messaging app Signal, Moxie Marlinspike, wants to end that problem using a digital currency called MobileCoin. He want to offer simple, fast and cheap transactions for all users.
“I think usability is the biggest challenge with cryptocurrency today. The innovations I want to see are ones that make cryptocurrency deployable in normal environments, without sacrificing the properties that distinguish cryptocurrency from existing payment mechanisms”.
The coin is based on the open-source Stellar Consensus Protocols platform that also powers Stellar protocol. It brands itself as a hybrid cryptocurrency to support M-commerce transactions. It employs SIM cards for data protection and active certificates for distributed trust.
But there are many more problems affecting the network currently apart from price of transactions. These will also need to be clear if it has to be improving to catch up with the likes of Visa. On is slow transactions. For instance, while Visa processes 3,674 transactions per second; the best bitcoin network might be able to process seven per second.
Stellar blockchain is in regard as faster and more efficient than its predecessors.
Kik mobile messaging service has been using Ethereum but is also moving to Stellar according to an announcement.
CEO Ted Livingston said,
“We’ve been using Ethereum to date, and to be honest I call it the dial-up era of blockchain”.
Further, MobileCoin is not focusing on providing a cheap and fast transactions only. It is also planning to provide anonymous and private alternative to other cryptocurrencies. It would be interesting to see how they incorporate other cryptocurrencies such as DASH, Monero and Zcash.