Author: Mike Hearn 2013-05-07 09:00:52
Published on: 2013-05-07T09:00:52+00:00
In a discussion about the usefulness of the blockchain, it has been argued that there are transactions which do not require its double-spend protection. For example, when Facebook bought Instagram or when an employer pays an employee their salary, the legal system is enough to ensure payments are honored. Small payments may also not benefit from the blockchain if the cost of double spending exceeds what the payment is worth. However, for large transactions that are not big enough to justify expensive cross-jurisdictional legal action or where identity verification costs are too high, the blockchain is valuable. In most online transactions today, the blockchain falls within this category.
Updated on: 2023-06-06T16:07:46.640808+00:00