- October 17, 2018
- Posted by: Bitcoin Center NYC
- Category: The Latest Bitcoin News
Confirmed in block 545911, the large bitcoin transaction of 30,000 bitcoin took approximately thirty minutes to confirm and cost around $0.10 in fees. This transaction provides yet another example of just how impactful blockchain and bitcoin will be for a globalized world. A similar international transaction through centralized entities would amount to thousands in transaction fees.
CCN finds that a million dollars sent through a bank would cost over $10,000 in fees. Alternatively, an alternative platform such as Transferwise would cost $7,500 in fees. The $0.10 fee for a bitcoin transaction of that amount only adds proof to the notion that peer-to-peer cross border payments through centralized entities are both antiquated as they are costly.
There is clearly no scalability issue when it comes to fees associated with larger transactions. If anything, the fees are more harmful to small scale transactions. As the CCN article points out, a flat fee of $0.10 is more costly and less efficient for smaller transactions of, say, $1 to $10 dollars. However, since the adoption of Segregated Witness, the bitcoin blockchain has been able to enable second-layer solutions, such as the Lightning Network, to be implemented on its network. The Lightning Network facilitates payment channels that allow instant transactions for a negligible fee; which is perfect for improving smaller transactions on the bitcoin network.
All in all, it seems the most harsh critics should be asking why banks can charge so much to clear international transactions. The future, at least for cross border payments, seems bright for bitcoin which can clearly support large cross border transactions for a fraction of a fee.