Aeternity (AE) Partners with SatoshiPay to Offer Micropayments Service

“We have GREAT NEWS: æternity partners with SatoshiPay to offer unprecedented micropayments service. æternity just acquired a stake in SatoshiPay which will now use the unique AE state channels to build fastest micropayments!” Read More — Vlad Dramaliev, Head of Digital Marketing

Summary

SatoshiPay will use æternity’s high throughput rates and unique state channels features to build out its micropayment API.

They are also working together on faster transaction scalability and smart contract support.

This comes after æternity acquired a stake in SatoshiPay during their latest funding round.

Significance

There is macro potential in micropayments. The concepts has been around since the 90’s, but several attempts at a viable solution have failed. Nearly all of the reasons cited for those failures are remedied through blockchain technologies. Cryptocurrencies are much better-suited for micropayments than traditional methods such as credit cards. This is mainly due to the processing fees required by the transaction middlemen and explains why you often see minimum purchase requirements for credit cards at corner shops and smaller retail outlets.

SatoshiPay wants to make their blockchain-based micropayments service the fastest to date, targeting 2000+ transactions-per-second (TPS) to accommodate customers that require high throughput. One such customer is Axel Springer SE, Europe’s largest digital content company that owns a portfolio of brands including Business Insider. Their users will be able to pay for digital content with cryptocurrency stored in the SatoshiPay wallet.

Through this partnership, æternity will be demonstrate the power of their blockchain with a high TPS rate, state channels and practically free transactions. State Channels in particular should be a good use case for micropayments, as transactions within state channels are free of charge once the channel is open. All in all, this type of progress towards enabling a viable micropayment system is a positive for the ecosystem and will help to demonstrate the superior features of cryptocurrency over legacy payment methods.

AE price at time of Blockfolio Signal: $0.46

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