Unfortunately, mainstream crypto-currencies currently just aren’t practical for use in purchasing everyday goods and services.
Just ask Warren Buffett, Chairman and CEO of Berkshire Hathaway; Lloyd Blankfein, CEO of Goldman Sachs; or Ray Dalio, Chairman and Chief Investment Officer of Bridgewater Associates, a global macro investment firm and the world’s largest hedge fund, all of whom have spoken out on the limited use cases of today’s crypto-currencies.
“Right now, it’s not an effective medium of exchange,” Dalio stated in an interview at the Milken Institute, an independent economic think tank based in California. “I have some Bitcoin, I want to go spend a Bitcoin — you can’t use it as an effective medium of exchange other than in a very limited number of cases.”
Why is that? Let’s think about it this way. Say tomorrow, you walk into Starbucks and buy a cup of coffee. You swipe your debit card, wait a few seconds, and the cashier hands you your receipt along with your cup of coffee.
Now, let’s imagine if instead you were able to pay with Bitcoin. Similarly to the previous example, you pay for the coffee, this time transferring the funds to Starbucks from your Bitcoin wallet. What’s different this time is, you don’t get your coffee right away.
Instead, you get to wait by the register for eight-to-ten minutes while your transaction is confirmed, as the rest of the customers glare at you for wasting their time. Then, after the longest ten minutes of your life, you get your coffee.
Oh, and did I mention there’s another $15 fee tacked on in order to get that ten minute turnaround time? Otherwise, you could be waiting 24 hours or more.
As you can see, one of the major roadblocks for Bitcoin on its road to ubiquity is this transaction confirmation time, which is determined by the block speed of the underlying blockchain. This is where Avesta, a new crypto-currency and blockchain protocol, truly shines over Bitcoin.
In an interview with Wired, Emin Gun Sirer, professor and crypto-currency researcher at Cornell University, estimates that at its best, the Bitcoin network could process seven transactions per second, but typically achieves only 3.3. Compare that, if you will, to Visa’s 3,674 transactions per second.
Thus, these exorbitant fees ($15 on a $3 cup of coffee) are necessary for essentially allowing you to “skip the queue”. This ensures that your transaction is among the first to be processed, and leaves you with a transaction confirmation time that usually falls within the range of eight-to-ten minutes.
Compared with Bitcoin’s 10 minutes, Avesta’s lightning-fast transactions are confirmed in only 10 seconds.
How the team manages to achieve this speed is even more exciting:
“We accomplished this with a literal multi-layered approach. We’ve separated the blockchain into a verification layer and a transaction layer. The former is where the mining happens, where miners work together to solve the mathematical equations necessary. The transaction layer acts as a public ledger, the way cryptocurrency was intended to act, but without the millions of proof-of-work actions slowing it down.”
With its speed and other powerful features, including built in guards against double spending and an innovative node consensus mining reward system, the Avesta blockchain enables point-of-sale transactions, letting you efficiently purchase everyday goods and services, like that coffee from Starbucks, with crypto-currency.
Unlike other coins on the market today, Avesta provides a truly seamless digital currency experience. The Avesta token sale is currently open, having already sold over 23 million Avesta tokes (AVE).
Learn more by checking out the platform whitepaper at https://www.avesta.io/pdf/Avesta-Whitepaperv12-en.pdf and register today at https://www.avesta.io