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OctoinFebruary 02, 2018
Technology in simple words: Microtransactions in crypto-currencies.

Microtransactions are quite a promising direction, because in the near future they can become an alternative way of paying, for example, for freelancers, and also to monetize social networks.

Previously, there was no special need for micropayments, and they were difficult for users, but with the increase in the bitcoin rate and the growing popularity of cryptocurrency, they became a necessity. Microtransactions and their various uses were a significant part of our work at the stage of working out our own cryptocurrency OctoinCoin.

The prospects for microtransactions were so attractive that the titans of the crypto-currency world, namely Bitcoin and Ethereum, entered the struggle for this market.

Bitcoin is the first in everything, and micropayments are no exception. The disadvantages were that the fees for these transfers were high, and the processing of the blocks was quite long (about 10 minutes).

When Ethereum entered the game, the situation on the market changed. One of the first projects that wanted to use Ethereum for microtransactions was Raiden Network. The developer of this project Heiko Hees stated that the Ethereum network is an ideal platform for micropayments, since commissions will be smaller than they were in the Bitcoin blockchain, and they can be settled more quickly.

Of course, bitcoin developers are not used to being at the tail and trying to improve the system thanks to the Lightning Network. This is a protocol that can perform microtransactions outside the main network, while the main line will only process large transactions. According to forecasts, the flexibility and efficiency of this technology should be an ideal solution.

New projects working with crypto currency, including OctoinCoin, are interested in high rates of network bandwidth. This is due to the desire of any startup to attract as many users as possible. Therefore, Bitcoin and Ethereum should make a lot of efforts to reach the peak and become a VISA level, which performs a huge number of operations per second (about 45 thousand).

The market does not stand still. Day by day, now and then there are platforms that help ordinary users not only to join the world of crypto currency, but also tempt the opportunity to conveniently conduct microtransactions.

A good example is the IOTA cryptocurrency (the transaction protocol system for the Internet of Things "Internet of Things" when the device interacts with the device without human intervention). All IOTA tokens are generated simultaneously and are used, first of all, for conducting microtransactions. This system allows you to conduct transactions between users without commission, which is undoubtedly beneficial, since micro-transfers due to commissions are bypassed.

But despite the flaws in the system, cryptoworld is rapidly evolving and, perhaps, in the near future, microtransactions will not only become an alternative method of payment in online resources, but will completely replace some functions in classical banking. In general, there is something to work on and what to strive for. Our team will continue to work in this direction and improve the OctoinCoin to meet the needs of our investors.