Earlier quoted context omitted.
In 2023 I did a deep dive into the crypto community with two main questions: - do these people understand the principles of making good products? - is anyone clearly working towards a microtransaction system that could replace advertising and subscription models? After attending two conferences, hundreds of conversations and hours spent researching, my conclusion to both questions was no. The community felt more like…
I have also done similar research because I wanted to build something to handle microtransactions on a personal website that could scale if adopted to be usable by everyone if they wanted. I looked at crypto currency because it seems like the obvious naive solution. it doesnt work. the cost of the transaction itself far outweighs the value of the transaction when dealing with fractions of a cent. you want an entire n…
A typical credit is getting paid in, transacted once, and cashed out. And a transaction with a user ID, destination ID, and timestamp only needs 16 bytes to store. So if you want to track every hundredth of a penny individually, then processing a million dollars generates 0.16 terabytes of data. You want to keep that around for five years? Okay, that's around $100 in cost. If you're taking a 1% fee then the storage cost is 1% of your fee.
If your credits are worth 1/20th of a penny, and you store history for 18 months, then that drops the amount of data 17x.
(And any criticisms of these numbers based on database overhead get countered by the fact that you would not store a 10 credit transaction as 10 separate database entries.)