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Ethereum gas prices are so enormously high that doing any transaction at all on it seems pretty cost prohibitive at the moment IMHO

by nyxtom 6y ago

suikadayo 6y ago
It’s actually less than Bitcoin’s when doing a simple transfer. It’s only bad when you’re interacting with smart contracts. Layer 2 solutions like Loopring and zkSync also exist, with Optimism in July.
kerng 6y ago
For settlements it's fine, like with Bitcoin lightning network. Since this uses crypto.com only now I'd imagine transactions are in CRO for now, then settled via Ethereum over time.
chrisco255 6y ago
I mean, it's roughly $20-$40 to send an ERC20 token, which yes, is high for retailers and has to get fixed (with zkRollups, see: https://zksync.io/ https://zksync.io/, it is fractions of a penny per trade)...but VISA and Crypto.com are going to be settling millions of dollars, and that fee does not waiver based on the transaction amount. So, it's not an issue for the aforementioned parties.
- arcticbull 6y ago
  At that point why wouldn't they just wire the money. This seems like Visa trying to act hip.
  - chrisco255 6y ago
    You need to interact with some of these Decentralized Financial applications to get an idea of the utility of stable coins like USDC and DAI vs an ordinary dollar. They're completely programmable. You can lock them into smart contracts that are completely auditable, open source, and verifiable on chain. You can earn yield lending out your USDC on protocols like Compound (https://compound.finance/ https://compound.finance/) or Aave (https://aave.com/ https://aave.com/). You can provide liquidity for other crypto pairs such as ETH-USDC, or WBTC-USDC on Uniswap (https://uniswap.org/ https://uniswap.org/) or SushiSwap (https://sushi.com/ https://sushi.com/). You can join a lossless lottery on PoolTogether (https://pooltogether.com/ https://pooltogether.com/). You can remit payments in USDC worldwide, instantly, with no intermediaries by conducting a transaction on the ETH blockchain. There's high, high demand for crypto dollars, both within the crypto ecosystem as well as international folks who are unbanked and don't have access to USD. But besides this, after using DeFi, I can't stand the archaic nature of our existing financial system. It really is going to go the way of Blockbuster this decade. This is a smart move by Visa to stay ahead of the trends, to get involved, to earn fees, to stay relevant in this new, developing world.
    - arcticbull 6y ago
      Ok but Visa doesn't need any of that. That's my point. I re-read the article like 4 times looking for an answer to my question, and there isn't one. There's no reason Visa would do this - there's nothing in it for them - other than to look hip.
      - chrisco255 6y ago
        Of course they do. There's a $1.8 trillion dollar market out there (and rapidly growing). There's over $40B of value floating on DeFi (up from less than $1 billion a year ago!). Not only does it behoove Visa to offer onramps and offramps for crypto services, because they collect fees from such activity, but it helps build their expertise in the fastest growing financial sector on the planet.
        arcticbull 6y ago
        That money is "floating around DeFi" has no bearing on Visa opting to settle transactions in USDC. They're not getting into DeFi lol, unless you have some unreleased memo. Do you have data to back your claim that it's the "fastest growing financial sector"? By what measure? What metric? Your replies are hyperbolic at best, and read a bit like like zealotry at worst.
        chrisco255 6y ago
        There is no other sector in finance that saw a 40X (!!!) gain in the past year. See for yourself: https://defipulse.com/ https://defipulse.com/ Yes, USDC is by definition DeFi. This is VISA plugging into it, providing ON-RAMPS and OFF-RAMPS into the whole DeFi and Ethereum ecosystem. Take it from Circle's CEO Jeremy Allaire (the organization behind USDC): "Major USDC news today - @Visa has become the first major payments network to support USDC as a native currency and settlement system on its network. This is massive news, and marks a major turning point in mainstream adoption of crypto. With USDC being the fastest growing dollar digital currency in the world, connecting its use to existing global networks will accelerate its adoption as both a store of value and medium of exchange. Crypto dollars FTW! What does this really mean? A customer who has USDC in a wallet, and a card attached to their wallet (there are now dozens of these) can spend at any Visa accepting merchant, and the USDC is used to settle the transaction with Visa instead of the legacy banking system. For Visa, this means they get the money as fast as a blockchain moves funds, without reversal risk, without the time delays and costs of SWIFT, ACH, etc. Huge! This is "Over-the-Top" (OTT) money, and a major step in our mission to build a new global economic system on a more open, global, safe and inclusive foundation built on crypto and blockchain tech. Huge congrats to @cuysheffield and the team at @Visa for really putting your money where your mouth is and embracing the future, we welcome you with open arms in the movement towards an open internet of value!" https://twitter.com/jerallaire/status/1376493343476187138 https://twitter.com/jerallaire/status/1376493343476187138

Ethereum gas prices are so enormously high that doing any transaction at all on it seems pretty cost prohibitive at the moment IMHO

by nyxtom 6y ago

Ethereum gas prices are so enormously high that doing any transaction at all on it seems pretty cost prohibitive at the moment IMHO

suikadayo 6y ago

It’s actually less than Bitcoin’s when doing a simple transfer. It’s only bad when you’re interacting with smart contracts. Layer 2 solutions like Loopring and zkSync also exist, with Optimism in July.

kerng 6y ago

For settlements it's fine, like with Bitcoin lightning network. Since this uses crypto.com only now I'd imagine transactions are in CRO for now, then settled via Ethereum over time.

chrisco255 6y ago

I mean, it's roughly $20-$40 to send an ERC20 token, which yes, is high for retailers and has to get fixed (with zkRollups, see: https://zksync.io/ https://zksync.io/, it is fractions of a penny per trade)...but VISA and Crypto.com are going to be settling millions of dollars, and that fee does not waiver based on the transaction amount. So, it's not an issue for the aforementioned parties.

arcticbull 6y ago
At that point why wouldn't they just wire the money. This seems like Visa trying to act hip.
- chrisco255 6y ago
  You need to interact with some of these Decentralized Financial applications to get an idea of the utility of stable coins like USDC and DAI vs an ordinary dollar. They're completely programmable. You can lock them into smart contracts that are completely auditable, open source, and verifiable on chain. You can earn yield lending out your USDC on protocols like Compound (https://compound.finance/ https://compound.finance/) or Aave (https://aave.com/ https://aave.com/). You can provide liquidity for other crypto pairs such as ETH-USDC, or WBTC-USDC on Uniswap (https://uniswap.org/ https://uniswap.org/) or SushiSwap (https://sushi.com/ https://sushi.com/). You can join a lossless lottery on PoolTogether (https://pooltogether.com/ https://pooltogether.com/). You can remit payments in USDC worldwide, instantly, with no intermediaries by conducting a transaction on the ETH blockchain. There's high, high demand for crypto dollars, both within the crypto ecosystem as well as international folks who are unbanked and don't have access to USD. But besides this, after using DeFi, I can't stand the archaic nature of our existing financial system. It really is going to go the way of Blockbuster this decade. This is a smart move by Visa to stay ahead of the trends, to get involved, to earn fees, to stay relevant in this new, developing world.
  - arcticbull 6y ago
    Ok but Visa doesn't need any of that. That's my point. I re-read the article like 4 times looking for an answer to my question, and there isn't one. There's no reason Visa would do this - there's nothing in it for them - other than to look hip.
    - chrisco255 6y ago
      Of course they do. There's a $1.8 trillion dollar market out there (and rapidly growing). There's over $40B of value floating on DeFi (up from less than $1 billion a year ago!). Not only does it behoove Visa to offer onramps and offramps for crypto services, because they collect fees from such activity, but it helps build their expertise in the fastest growing financial sector on the planet.
      - arcticbull 6y ago
        That money is "floating around DeFi" has no bearing on Visa opting to settle transactions in USDC. They're not getting into DeFi lol, unless you have some unreleased memo. Do you have data to back your claim that it's the "fastest growing financial sector"? By what measure? What metric? Your replies are hyperbolic at best, and read a bit like like zealotry at worst.
        chrisco255 6y ago
        There is no other sector in finance that saw a 40X (!!!) gain in the past year. See for yourself: https://defipulse.com/ https://defipulse.com/ Yes, USDC is by definition DeFi. This is VISA plugging into it, providing ON-RAMPS and OFF-RAMPS into the whole DeFi and Ethereum ecosystem. Take it from Circle's CEO Jeremy Allaire (the organization behind USDC): "Major USDC news today - @Visa has become the first major payments network to support USDC as a native currency and settlement system on its network. This is massive news, and marks a major turning point in mainstream adoption of crypto. With USDC being the fastest growing dollar digital currency in the world, connecting its use to existing global networks will accelerate its adoption as both a store of value and medium of exchange. Crypto dollars FTW! What does this really mean? A customer who has USDC in a wallet, and a card attached to their wallet (there are now dozens of these) can spend at any Visa accepting merchant, and the USDC is used to settle the transaction with Visa instead of the legacy banking system. For Visa, this means they get the money as fast as a blockchain moves funds, without reversal risk, without the time delays and costs of SWIFT, ACH, etc. Huge! This is "Over-the-Top" (OTT) money, and a major step in our mission to build a new global economic system on a more open, global, safe and inclusive foundation built on crypto and blockchain tech. Huge congrats to @cuysheffield and the team at @Visa for really putting your money where your mouth is and embracing the future, we welcome you with open arms in the movement towards an open internet of value!" https://twitter.com/jerallaire/status/1376493343476187138 https://twitter.com/jerallaire/status/1376493343476187138