In this report, we’ll dive into how micropayments work, key drivers and we illustrate its future. We share one of our client’s success story to emphasis the possibility that micropayments hold also for smaller companies.
Software Consulting Director at Espeo, specialised in IT Systems & Business Analysis
The blockchain technology has energized micropayment systems and the whole infrastructure connected with it.
To make the system more efficient, and lower processing fees, companies started to use micropayment channels technology. It was proposed as an alternative to the bitcoin protocol’s capacity. Lightning Network mechanism, which made transactions almost instant and reduced costs, relied on the creation of the second layer on top of the cryptocurrency, while keeping the peer-to-peer character of the transactions. Payment channel is basically the agreement between sender and receiver of a micropayment.