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by redial 2761 days ago
I do not know much about Bitcoin or other crypto coins, but how can it be more efficient if it takes on average[1] almost an hour for a transaction to be validated? Credit card, Apple Pay, Ali Pay, etc. are instant.

[1] https://coincentral.com/how-long-do-bitcoin-transfers-take/

4 comments

Credit cards are not instant. They take several days before they post. And you can spend more USD in your bank account than is actually there up to a certain extent, causing "overdraft" (if you allow it). The hour that you wait for BTC is to make sure it can't be taken back. A credit card transaction can even be taken back after it has completely cleared called a "chargeback".

BTC is actually instant. You don't even need internet access! But to make sure it can't be taken back, we wait an hour.

There was a quote by Andreas Antonopoulos (Mastering Bitcoin) saying something about the cost vs. risk and how you can afford to sell a cup of coffee instantly without fearing a double-spend attack. You might wait for one or two blocks to be confirmed before you sell a laptop. That scales exponentially for six blocks being so expensive to double-spend past that it'd cost you a hangar ship.
there are alternative coins that are much faster. plus there are many of them, so if a blockchain is slow, people will theoretically be able to switch to another. having 3-4 different coins in our digital wallets doesn't seem like its going to be a huge hassle, especially if it is going to be easy to exchange between them.
Smaller coins are very inexpensive to double-spend.

There was someone on hacker news some months back who collected donations to proof-of-concept abuse one or more.

So a safer alternative would be a token coin on Ethereum, since you're not actually switching to a microscopic, unknown and thus abusable blockchain.

> Credit card, Apple Pay, Ali Pay, etc. are instant.

Not really. There's a settlement period, and if the transaction can be reversed, it's really not complete in the sense of a Bitcoin transaction with 6 confirmations.

That's a deliberate (and extremely useful) feature.
The transaction may not be truly completed, but it was validated instantly.
Which in Bitcoin's case, would be a 0-confirmation transaction, which is visible pretty much immediately as well.
0-confirmation seems to be just a placeholder, so I do not think it is comparable at all to a credit card verification.

I do not want to nitpick but credit cards validate, that is to say they verify the parts in a transaction and resolve instantly if it can or cannot take place, and then it does take place instantly. That you can "take it back" is a feature independent of the actual operation. The settlement period is not a technological imposition but a human one; it is in place because humans are not trustworthy.

On Bitcoin on the other hand, the limitation is inherently technical. The protocol verification methods are slow by design.