The marketplace valuation of all of the cryptocurrencies combined has surpassed the marketplace cap of leading fiscal service provider Visa, past times $30 billion.
At the fourth dimension of reporting, the marketplace cap of Visa remains simply higher upward $254 billion, spell the marketplace valuation of the entire cryptocurrency marketplace is $285.9 billion.
Visa vs Cryptocurrency Market past times Numbers
According to the Visa 2016 annual report, the Visa network processes about $5.8 trillion worth of transactions per year, to a greater extent than oft than non from the 3.1 billion visa debit as well as credit bill of fare issued globally. More than 83.2 billion transactions were settled on the Visa network inward 2016.
In contrast, the cryptocurrency marketplace settles significantly less transactions on a daily basis. The Ethereum network settles to a greater extent than transactions than all of the cryptocurrencies inward the marketplace combined, as well as the entire cryptocurrency marketplace processes about 1 i grand m transactions per day. That is, thirty i grand m transactions per calendar month as well as some 360 i grand m transactions per year.
However, pith developers of most populace blockchain networks such equally bitcoin as well as Ethereum are working on the evolution as well as deployment of second-layer payment networks. The utilization of second-layer payment channels similar Lightning as well as Plasma volition enable cryptocurrencies similar bitcoin as well as Ethereum to rest equally secure shop of values, spell payment channels operate similar the Visa network as well as are launched on top of the cryptocurrencies.
A recent question newspaper from the Blockstream question team entitled “Scalable Funding of Bitcoin Micropayment Channel Networks” revealed that with necessary solutions inward house such equally micropayment channels tin move back upward at to the lowest degree 800 i grand m users with the electrical flow infrastructure.
“Micropayment channel networks practice novel problems, which accept non been solved inward the master papers [8,18]. We position 2 top dog challenges – the blockchain capacity as well as locked-in funds. Even with increases inward block size it was estimated that the blockchain capacity could solely back upward nigh 800 i grand m users with micropayment channels due to the number of on-chain transactions required to opened upward as well as closed channels,” read the paper.
With micropayment channel optimization through the elimination of channels as well as unnecessary information, the Blockstream question newspaper noted that nearly 96 per centum of the blockchain space, significantly increasing the capacity of transactions as well as number of users payment channels tin move handle.
“By hiding the channels from the blockchain, a reduction inward blockchain infinite usage as well as therefore the terms of channels is achieved. For a grouping of twenty nodes with 100 channels inward betwixt them, this tin move relieve upward to 96% of the blockchain space,” the newspaper added.
Already, inward terms of daily trading volume, the cryptocurrency marketplace is processing over $10 billion worth of trades on a daily basis, from cryptocurrency to fiat as well as vice versa. The global cryptocurrency central marketplace processes $3.6 trillion inward trades on a yearly basis, which is closer to the book of the Visa network. It is fair to compare the trading book of cryptocurrencies to the Visa network equally both markets handgrip trades alongside hundreds of digital as well as government-issued fiat currencies.
In the long-term, the transaction book of cryptocurrencies volition hold out able to surpass that of Visa, if on-chain as well as off-chain scaling solutions are implemented onto leading populace blockchains.
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