The cryptocurrencies exceed the market capitalization of Visa


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The market valuation of all combined cryptocurrencies has exceeded the market limit of the leading provider of financial services Visa, at $ 30 billion.

At the time of reporting, Visa's market capitalization remains just over $ 254 billion, while the market value of cryptocurrencies is $ 285.9 billion.

Cryptocurrency market versus cryptocurrency

According to Visa 2016 annual report, the Visa network processes around $ 5.8 billion in annual transactions, mainly from the 3,100 million visa credit and debit card issued to world level. In 2016, more than 83.2 billion transactions were settled in the Visa network.

On the other hand, the cryptocurrency market establishes a significantly smaller number of daily transactions. The Ethereum network establishes more transactions than all the combined cryptocurrencies in the market, and the entire cryptocurrency market processes around 1 million transactions per day. That is, 30 million transactions per month and approximately 360 million transactions per year.

However, the main developers of most public blockchain networks such as Bitcoin and Ethereum are working on the development and deployment of second layer payment networks. The use of second layer payment channels such as Lightning and Plasma will allow cryptocurrencies such as Bitcoin and Ethereum to remain as secure storage of securities, while payment channels operate like the Visa network and are launched on cryptocurrencies.

A recent investigation The Blockstream research team document entitled "Scalable financing of Bitcoin micropayment channel networks" revealed that with the necessary solutions, micropayment channels can support at least 800 million users with the current infrastructure.

"Micropayment" channel networks create new problems, which have not been resolved in the original documents [8,18]. We identified two main challenges: the capacity of the block chain and the blocked funds. Even with increases in the size of the block, it was estimated that the blockchain capacity could only support some 800 million users with micropayment channels due to the number of chain transactions needed to open and close channels, "the document says.

] With micropayment channel optimization through the elimination of channels and unnecessary information, the Blockstream research work pointed out that almost 96 percent of the blockchain space, which significantly increases the capacity of transactions and the number of payment channels of users.

"By hiding the channels of the blockchain, a reduction in the use of the space of the block chain is achieved and, therefore, the cost of the channels. For a group of 20 nodes with 100 channels between them, this can save up to 96% of the space of the block chain, "the newspaper added.

Already in terms of daily trading volume, the cryptocurrency market processes more than $ 10 billion value of daily exchanges, from cryptocurrency to fiat and vice versa The global cryptocurrency exchange market processes $ 3.6 billion in annual operations, which is closer to the volume of the Visa network It is fair to compare the trading volume of cryptocurrencies with the Visa network, since both markets handle exchanges among hundreds of digital fiduciary currencies and issued by the government.

In the long term, the volume of transactions of cryptocurrencies may exceed that of Visa, if implemented chain and off-chain scaling solutions in major public block chains.

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