Efficiency means everything for cryptocurrencies. It happens to be one of the core marketing points for any token in the market.

Please note that even though efficiency is most often related to the transaction speed, it covers way more than that. Ranging from the amount of data required to register on a crypto network to the transaction speed and cost, everything falls under the broad category of efficiency.

User influx

Users seek ease and flexibility. Crypto offers them both.

See, in order to open an account in a bank, you need to get in a car, visit the bank, fill a long form, enter every single detail related to your private life (you even got to tell them whether you are married or single) and then wait for about 7 business days before you can finally avail the services. That’s a long road!

Cryptocurrencies offer an exact opposite of this process. You just have to visit the site, provide minimal details (no personal details required) and get a wallet opened immediately. It’s that simple!

The confirmation is also instantaneous and happens in a couple of minutes, if not seconds.

As a result of this “super-fast” method, users are more likely to open a crypto wallet, instead of a bank account and if the number of wallets exceeds the number of bank accounts, the ball is already in our court since one of the primary aims of cryptocurrencies is to replace the fiat or traditional banking model.

Faster and cheaper transactions

Just offering a swift registration isn’t enough. In fact, that’s when the real job begins. Now that the prospect is your customer, you got to provide an optimum experience.

One of the basic reasons that urge people to use crypto is its sheer efficiency. In the traditional banking system, if you want to send payment across the border, you would have to pay a hefty sum as a transaction fee and wait for several days before the amount is reflected in receiver’s account. In the modern economy, such a massive inefficiency cannot be afforded by either of the parties and nor the bank.

There are several types of transactions that require immediate settlements and such efficiency is only achievable in cryptocurrencies. The foremost reason is that there is no middle-man involved in these transactions, which makes everything far less complicated. Moreover, since the network operates on a P2P basis, the currency exchange complications are also resolved, particularly in cross-border payments.

The utmost bliss comes with smart contracts, which are actually the real World agreements, cannot be tampered by anyone and are executed in a highly secure environment. In a blockchain-based environment, smart contracts take over the middlemen and since they do not require any compensation and are not dependent on any geographical boundary, the transaction fee and duration are reduced significantly.

Talking about efficiency and versatility, please note that crypto transactions offer quite a decent feasibility to tokenize any asset. Once again, the brokers or intermediary party are removed from the process and the procedure becomes even more efficient.

How does Tarush boost efficiency?

For us, efficiency goes far beyond than the factors mentioned above. In order to achieve that, we have implemented the MimbleWimble protocol. Essentially, it happens to be a sidechain for the BTC network, which aims to bring a whole new level of efficiency and scalability.

Despite being a cryptocurrency, Bitcoin is suffering from a significantly low throughput as a result of network congestion. Back in 2009, some major technical factors were overlooked and with the passage of time, the results are quite observable due to network congestion.

In the last couple of years, the usage of crypto, particularly BTC, has surged exponentially but the network capacity remains the same. Therefore, we need to offer another channel for executing the transactions and facilitating the load.

This protocol is gaining popularity for providing feasibility in order to increase the TPS rate of the main BTC network. Talking about mainstream sidechains, they merely focus on ‘providing an alternate path’ for the flow of transactions. Well, that’s good for efficiency, but in the long run, that’s not enough. Therefore, MimbleWimble has focused on scalability as well.

The perks of efficiency in financial transactions

Well, efficiency is beneficial in pretty much all departments, but when we talk about financial transactions, it opens new doors to businesses and allows more use cases to be implemented.

Marketplace companies

These are companies like Facebook, eBay, and Amazon. The user and employee base is huge and every second activity involves a financial transaction — making these efficient would allow the companies to accept payments from customers in an instant and pay their employees at the same speed. Moreover, as discussed above, these marketplaces will also be able to cut off their hefty prices and increase feasibility for an ordinary consumer as well.

Governments

When governments release payments in different schemes for the welfare of their residents, the amount is usually in a couple of billions. Forget about the transaction cost and delays for a while. Since there are many intermediaries involved, the inefficiency due to corruption is significant.

What’s even more disturbing is that the issue does not only persist in underdeveloped countries. The UK alone suffers from a loss of about $3.5 billion in terms of welfare payment. What else can we expect from a developing country?

If they start doing it in crypto, everyone can open the wallet account in a matter of seconds and the government can directly fund the wallets instantly without having to rely on an intermediary.

A word

You must have realized the true potential of cryptocurrencies and how efficient they are. Furthermore, after reading the article, it becomes self-explanatory as to why maintaining a sheer level of efficiency is so important for any network, BTC in particular, as it happens to be a trend-setter in the niche.

This is the very reason why Tarush is tapping on the potential of Bitcoin and utilizing the MimbleWimble blockchain to increase the efficiency of the pioneering cryptocurrency.