The Benefits Of Blockchain Are Becoming More Evident

Most of us on here are aware of the potential of blockchain and how cryptoeconomics can change the world. The rest of the world is lagging a bit behind.

There are a few things we are seeing that is making it evident how powerful these technologies are and how much disruption is taking place.

I came across an article that mentioned a transaction of Bitcoin that took place. It is really a big deal when you think about it.

A trade took place on Binance that moved $550M dollars worth of Bitcoin for a total of $5. This is a radical departure from what the banking industry charges. The transaction was an internal Binance trade so it would not have been handled the banking system.

For funds totaling $550 million, Binance managed to pay just $5 in fees or about 141 satoshis per byte. When executives moved the funds again, the fee was even less, clocking in at just $3.70.

https://bitcoinist.com/high-bitcoin-fees-someone-just-moved-550-million-for-5-bucks/

What makes this so newsworthy is the impact it could have on the banking system. $550M in money transfer would net a 1% free at a minimum which amounts to $5.5M. One of the reasons why the banking system is looking into blockchain is because fees can often come in at 5% to settle things across national boundaries.

When we consider the totality of the money that can be moved, this is a lot of fees removed from the international banking system. There are many companies that send tens of thousands of dollars overseas regularly. Using cryptocurrency networks could reduce this expense to mere mere pennies.

To take it one step further, how much does it cost to transfer 20K STEEM to another wallet?

The answer: zero.

As a money transfer mechanism, the advantage to cryptocurrency networks is the price is basically the same whether one is sending a few dollars or hundreds of thousands. It all comes down to the size of the data being transferred, not the amount in fiat.

In addition to being a store of value, I always believed that Bitcoin would serve as a mechanism for large monetary transfers. Sending $100K to Vietnam from the United States to pay a supplier is ideal for the Bitcoin network (although Litecoin could make more sense). Under these circumstances, if the transaction takes an hour, few care.

We still are in the very early stages of this entire industry. For this reason, articles detailing experiments like this are vital. We are in unchartered waters here. All of this is so new that we have to erect this system block-by-block. Each use case is vitally important.

The key to the growth of this industry is going to be the presenting of viable solutions to problems. Every thing we are doing is essentially a proof-of-concept.

Many eyes are watching and we are starting to provide solutions that make sense to people.

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