RE: [ Day #4 ] - The Daily Promo Steem Challenge! [ 2 SBD Bounty ]
Using steem for real-world transactions doesn't really work. One issue is that the price is so volatile that holding it is risky, as you don't know whether or not your steem will have any value tomorrow. Because of this everyone has to cash out quickly (or risk loosing money) into the local currency. Instead using a crypto like https://tether.to, which is pegged to the dollar, allows people to hold tokens – and not pay fees cashing out.
The second issue is the 10,000tx/s limit. While this sounds like a lot, it's not really. If we look at a country (say America) and the number of farms it contains (2.2 million). If all these farmers go to the markets at the same hour, and sell maybe items constituting 50 transactions, the network becomes overwhelmed.
Quick bit of maths
2.2 million (farms)*50 (transactions)= 110,000,000
110,000,000/60 (minutes) * 60 (seconds) = 30,555tx/s (20,555tx/s more than steemit can handle).
This is clearly only looking at America, and there are many other countries – all with many farms, which would further strain the network. To deal with this, forking the steemit code (and condenser code) for each market would probably be necessary. Maybe using smart media tokens?
Hey @missioncontrol. You can use it for smaller transactions without much risk. You can also have a similar solution as Bitcoin has that they seller have the option to keep it in STEEM/SBD or get it automatically converted into the local fiat currency.
The STEEM blockchain is not even close to being bogged down at 0.15% it's capacity and have over 50% of all transactions on the most active blockchains. People also join gradually so we will have time to improve it's capacity.
Seems like a cool setup. Have you got an app working yet?
no haven't yet... we need to setup an open source project for that...can you help? :)
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