‘’A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.’’
Satoshi Nakamoto, 2008
What did Satoshi Nakamoto mean? There has been a lot of water in the gutter since Satoshi Nakamoto brought to light his ‘ Bitcoin white paper’ to challenge global financial institutions.Bitcoin continues passing through fire and the iron, but it is evident here for the long term and has proven the genius of its invention over and over.
Bitcoin’s success is not limited to the fact th a t it is an outstanding peer-to-peer (p2p) payment solution but because of its deflationary nature and scarcity.It is not limited to an electronic payment currency conceived originally, and we cannot ignore Satoshi’s reference to it.We could not disregard the increasing demand for a secured, decentralized, fast, & affordable worldwide electronic money transfer method, particularly in developing countries.
What about electronic payments? As the demand for the service pre-existed, numerous cryptocurrencies focused on serving this purpose.Tokens such as Monero , Litecoin, Dash, XPR, Tron , and the recently emerging ONE , to mention a few, have come to life to offer a clear-cut solution to the challenge of fast and inexpensive transfers of value.
These emerging crypto coins have left Bitcoin to its mission of becoming the new “digital gold” asset, as fewer people seem to see it as a method of payment and more of an investment/speculation vehicle.Instead, they are working towards a slice of the sizeable money transfer pie.
By offering superior services on speed and low cost when comparing it to conventional money transfer vehicles to the likes of Banks, MoneyGram , or PayPal; These cryptocurrencies are undoubtedly an outstanding solution for electronic transfers, growing its users steadily.For instance, XRP offers a $ 0.0002 transaction fee, XLM a $ 0.001 fee, and an even better fee of $ 0.1 with Harmony (ONE) .
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On top of that, there has been a stream of positive news around them.
Stellar (XLM) recently announced a partnership with MoneyGram for blockchain-based payment services.Tron (TRX) announced it would trade with ETN (exchange-traded notes) on the Frankfurt Stock Exchange, the largest exchange in Europe.Nonetheless, neither cryptocurrency had experienced a significant price increase, quite the opposite, experiencing a degree of apathy from investors.
Despite the advantages and the flowing news, these coins are not getting the appreciation they deserve? What is required to bring more motion? Some of these crypto projects are outstanding, yet they do not get enough attention from buyers.
What is the future of digital payment cryptocurrencies? Cryptocurrencies that work exclusively in the field of payments are very limited.The reality is that the scope of what cryptocurrencies can do has gone beyond acting as a form of digital payment.The coins that are the most successful offer multi-dimensional functions.Harmony (ONE) experienced a new all-time high recently, offers incredibly low-cost transaction fees, and its protocol is for gaming, DeFi, and NFTs.Solana offers blockchain technology to build applications.
The speed and the low fees are not enough to excel in a distinctly competitive field, and it is unlikely sufficient to help some of these coins to survive in the long run.Investors will not choose a project because it is 0.2 seconds faster than another one or because it charges $ 0.0001 gas fees instead of $ 0.0002, particularly with other options on the table that offer a more robust product.
Stablecoins are undoubtedly the big favorite in the race.
Unlike their competitors, they offer speed and low-cost transactions without price volatility.However, without the regulatory framework, it is unknown if sufficient cash reserves are backing them.
Central bank digital currencies (CBDCs) have also come to the race.The Fed is considering a digital dollar, and China is already piloting its digital yuan.These currencies use blockchain technology, and trading could be fast and cheap.
Here, of course, comes the crucial question.
How much decentralization are we willing to sacrifice to obtain the advantages of digital currencies.Are we slowly transitioning into a centralized digital FIAT, and will the only reminisce left of the whole crypto-history will conclude with the blockchain technology at the service of central and state authorities?
And a small bet for the end.On October 13, BitTorrent announced on Twitter the launch of the BitTorrent Chain, with almost zero transaction fees, and as a layer-2 will introduce DeFi, NFT, and dApps solutions.The current planned date for the debut of BTTC is on October 30 of 2021.
Will it create a little more emotion? Let’s wait and see!.
