I think it's clear that the current ethereum network is not quite suitable for IoT based micro payments. And the slow transition toward PoS, which recently started, will put even more emphasis on gas payment as a reward for mining, hence (correct me if I'm wrong) not enabling an ecosystem for high frequency affordable micro payment system in a foreseeable future.

Are there any development of an alternative on in the ethereum world? Or outside of it?


There a few projects working on micro payments:

| improve this answer | |
  • Thanks, and would you be able to roughly explain how those low fees, quick confirmations could be done, given it still runs on main network? – J.C Apr 25 '18 at 6:39
  • You can create a payment channel between 2 parties by creating a contract on the main network depositing some Ether/ERC20 tokens. After that the parties can make payments to each other by exchanging cryptographically signed messages off-chain. This mechanism is designed in such a way that both parties are guaranteed to get their payments on the main net without submitting any transactions. The payment channel has to be closed at the end by submitting another transaction to the main net. The channels can be combined into a network enabling payments involving more than 2 parties. – medvedev1088 Apr 25 '18 at 6:51
  • Because the messages are exchanged off-chain you don't need to pay fees and wait for block confirmations. – medvedev1088 Apr 25 '18 at 8:00

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.