IDEAS home Printed from https://ideas.repec.org/a/rsk/journ7/7959312.html
   My bibliography  Save this article

Centralized and decentralized payments networks: a simple cost comparison

Author

Listed:
  • Peter Stella

Abstract

The original motivation for the concept paper introducing the Bitcoin blockchain and distributed ledger technology was to enable peer-to-peer transfers of currency and thereby eliminate the role of fiat money, banks and central banks in payments systems worldwide. Although subsequent generations of blockchains have been designed to enable additional applications such as the transfer of artifacts other than their native currencies (eg, tokenized bonds, nonfungible token digital artwork and items or objects purchased in online video games), the most prominent networks continue to stress their decentralized payments or “currency†applications. In this paper we examine the feasibility of the widespread adoption of cryptocurrencies in payments by comparing the output and cost statistics of several centralized payments systems with those of Bitcoin, Ethereum and Solana.

Suggested Citation

Handle: RePEc:rsk:journ7:7959312
as

Download full text from publisher

File URL: https://www.risk.net/system/files/digital_asset/2024-05/jfmi_Stella_web_final.pdf
Download Restriction: no
---><---

More about this item

Statistics

Access and download statistics

Corrections

All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rsk:journ7:7959312. See general information about how to correct material in RePEc.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

We have no bibliographic references for this item. You can help adding them by using this form .

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thomas Paine (email available below). General contact details of provider: https://www.risk.net/journal-of-financial-market-infrastructures .

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.