Exchanges
Gift Cards
Lightning Network
Exchanges offchain transactions
Advantages:
Offchain transactions, allowing any of the exchange's cyptos to be used in a Micro-Payments
Speed : Instant
Transfer Fees : extremely low or none
Transfers to user name instead of long crypto address
No limits on amount deposited or transferred
No Time Locks , amount can be withdrawal immediately
Any coins stored on the exchanges can be used, no segwit needed.
Funding can occur as fast as the individual coin blockchain allows
Unlimited Transactions offchain, with no requirement for any Onchain transactions (User could transact forever offchain)
Disadvantages:
Centralized Management
Fractional Reserve & Counterfeiting possible until Withdrawal confirms ownership
Exchange can steal all funds stored, (only recourse is legal action)
All people that you transact with , must be members of the exchange
KYC/AML regulation per Kakmakr
Gift Cards, once purchased
Advantages:
Able to purchase items and services in the standard fashion and uses existing equipment most vendors already own.
Transfer fee limited to 1 transfer of the specific coin used to buy the gift card funds
Easy to refill
No worries of Fractional Reserve or Counterfeiting
Uses the Gift Card's network to offload additional transactions from onchain
Only 1 onchain transaction needed to purchase funds per fill-up
Disadvantages:
Limit of $2000 purchased per day
IDs must be shown on very large purchases
Limited to specific vendors
Some Gift cards lose value with monthly fee or yearly inactivity fees
KYC/AML regulation per Kakmakr
Lightning Network
Advantages:
Offchain transactions, allowing segwit cyptos to be used in a Micro-Payments
Speed : Faster than onchain transactions
Transaction fees : lower than onchain
Funds are harder to steal, and usually revert to the original owner after time lock expires
Move transactions offchain to avoid updating onchain capacity
No KYC/AML regulation currently required. per Kakmakr
Disadvantages:
Requires both parties fund a channel ,
Requires 2 time locked Onchain Transaction per Party , meaning a single LN offchain transaction requires 4 onchain transactions
Fractional Reserve & Counterfeiting possible until Withdrawal ONCHAIN confirms ownership
Only works with coins with segwit in their code
The more hubs required to make a connection, the addition of a fee per hub to complete.
Other User must be part of the LN network , unless they are using a 3rd party Custodial LN Wallet
Can’t Handle Large Transactions Yet (large transactions amount listed at over $200)
See more at: coinwhalenews.com/news/btc
Gift Cards
Lightning Network
Exchanges offchain transactions
Advantages:
Offchain transactions, allowing any of the exchange's cyptos to be used in a Micro-Payments
Speed : Instant
Transfer Fees : extremely low or none
Transfers to user name instead of long crypto address
No limits on amount deposited or transferred
No Time Locks , amount can be withdrawal immediately
Any coins stored on the exchanges can be used, no segwit needed.
Funding can occur as fast as the individual coin blockchain allows
Unlimited Transactions offchain, with no requirement for any Onchain transactions (User could transact forever offchain)
Disadvantages:
Centralized Management
Fractional Reserve & Counterfeiting possible until Withdrawal confirms ownership
Exchange can steal all funds stored, (only recourse is legal action)
All people that you transact with , must be members of the exchange
KYC/AML regulation per Kakmakr
Gift Cards, once purchased
Advantages:
Able to purchase items and services in the standard fashion and uses existing equipment most vendors already own.
Transfer fee limited to 1 transfer of the specific coin used to buy the gift card funds
Easy to refill
No worries of Fractional Reserve or Counterfeiting
Uses the Gift Card's network to offload additional transactions from onchain
Only 1 onchain transaction needed to purchase funds per fill-up
Disadvantages:
Limit of $2000 purchased per day
IDs must be shown on very large purchases
Limited to specific vendors
Some Gift cards lose value with monthly fee or yearly inactivity fees
KYC/AML regulation per Kakmakr
Lightning Network
Advantages:
Offchain transactions, allowing segwit cyptos to be used in a Micro-Payments
Speed : Faster than onchain transactions
Transaction fees : lower than onchain
Funds are harder to steal, and usually revert to the original owner after time lock expires
Move transactions offchain to avoid updating onchain capacity
No KYC/AML regulation currently required. per Kakmakr
Disadvantages:
Requires both parties fund a channel ,
Requires 2 time locked Onchain Transaction per Party , meaning a single LN offchain transaction requires 4 onchain transactions
Fractional Reserve & Counterfeiting possible until Withdrawal ONCHAIN confirms ownership
Only works with coins with segwit in their code
The more hubs required to make a connection, the addition of a fee per hub to complete.
Other User must be part of the LN network , unless they are using a 3rd party Custodial LN Wallet
Can’t Handle Large Transactions Yet (large transactions amount listed at over $200)
See more at: coinwhalenews.com/news/btc
