Solution for Skyrocketing Blockchain Transaction Fees?
Originally, one of the biggest proposed benefits of decentralized cryptocurrencies was lower blockchain transaction fees, which was expected to encourage micropayments in the economy. Satoshi Nakamoto, the anonymous inventor of Bitcoin, himself suggested, in his famous white paper on Bitcoin, that the cost of mediation increases blockchain transaction costs, thereby discouraging micropayments.
As a matter of fact, blockchain transaction fees remained low for a while, as the average transfer fee for bitcoin blockchain transactions was $0.392, as recently as the start of 2017. However, the numbers have gone up dramatically since then, with Bitcoin blockchain transaction fees ranging from $20 to $30 and Ethereum transaction fees ranging from $2 to $3, in recent times.
Cryptocurrency transactions require paying a fee to miners, who are individuals or companies, that contribute processing power to the blockchain ecosystem, in order to service the blockchain network. Mining fees have surged in recent times because of a sharp increase in the number of transactions, as a much larger number of transactions need to be recorded in the network.
The dramatic increase in cryptocurrency transfer fees has posed a major question mark on the viability of cryptocurrencies as payment mechanisms, especially for smaller transactions.
An Innovative Solution that Aims to Solve the Problem
There seems to be a clear and immediate need for innovation that can tackle the problem of high cryptocurrency fees, in order to realize the original vision of using cryptocurrencies for micropayments.
Quick X is a project that aims to solve this issue by proposing a new protocol that connects different blockchains, enabling instant inter-chain transactions using an off-the-chain mechanism. Quick X proposes a decentralized platform, which incorporates the concept of pooling facilitators, that act as liquidity providers to the ecosystem, and facilitates instant cross-chain fund transfer.
Since transactions are happening off-the-chain in usual circumstances, miners don’t have to be rewarded, which leads to significant savings on the transaction fees. Even if the number of transactions scales up disproportionately, transaction fees for individual transactions don’t go up, as there is no mining involved for individual transactions.
Quick X has the Potential to Help Realize the Micropayment Vision
The technology underlying QuickX has the potential of enabling the original vision behind cryptocurrencies. Apart from addressing the issue of high transaction costs and lack of interoperability, the Quick X protocol also plans to tackle other major issues with cryptocurrencies including speed of transactions and scalability challenges, by enabling secure off-the-chain transactions, which don’t have the same limitations of transactions on Blockchain.
The solution can provide a major impetus to the micropayment economy, speed up the democratization of value exchange and immensely benefit the global economy as a whole.
The Quick X solution features a multi-currency crypto debit card and wallet, an option to exchange cryptocurrencies, and a payment gateway for merchants. The Quick X project is initiated by Secugenius, which is a cybersecurity company with global operations. In September 2017, Secugenius received an award for Innovation in Technology from the Vice President of India.
