Over the weekend, in a personal twitter thread Visa’s head of Cryptocurrency Cuy Sheffield made a case for using cryptocurrencies and Bitcoin in particular for blockchain micropayments.
Nick Szabo, the inventor of the term “smart contracts” wrote about the problem of micropayments and mental transaction costs. He classified the problems as “uncertain cash flows, incomplete and costly observation of product attributes, and incomplete and costly decision making”.
In his tweet thread, Sheffield addresses this in part. He argues that the problem is currently systems don’t allow for a fraction of a cent, whereas Bitcoin does with Satoshis (sats), which represent one hundred millionth of a Bitcoin.
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