Splits vs Cascades

Lots of business consists of mundane tasks just to fund the basic functions of the operation.

Any kind of financial transaction is oddly complex, slow, and expensive. Paying a vendor, for example, seems like it should be a one-click experience, but it’s really a pain.

I hosted a panel discussion yesterday about the promise of micropayments using BitcoinSV or other blockchain solutions. One of the use-cases discussed was split payments.

On BSV, you can have payments split between hundreds or even thousands of recipients automatically, from a single input. You can even do this for payments in the pennies or fractions of pennies.

Say a user clicks “Listen” on a podcast and is instantly, automatically charged 50 cents from their wallet. The podcast host could get 20 cents, 10 cents to the guest, 5 to the editor, and the other five split between 100 early backers who invested in the pod buy buying a revenue share token.

Now multiply that by thousands of listeners.

Absent a solution like BSV with instant transaction splits, you’d need an entire accounting system, bookkeeper, bank, and payment processor. You’d have to take one lump sum from the user (a minimum of a few dollars with fiat currency), wait a month or so until enough user payments were made, waiting a few days for each to clear the bank. Collect W9s and bank info for every party you wanted to pay. Send monthly ACH payments to each. They’d wait several days for those to clear. And none of the payments could be lower than several dollars (hence the monthly batching).

Who is going to run and process all those individual payments? How much will that cost? Your cash situation will always be days or weeks behind actuals, and you’ll have many points of failure, administration as people change addresses and banks, etc.

Instantly split payments down to sub-cent levels removes every one of these headaches businesses have simply come to accept as normal and built entire departments to handle.

Removing the time-intensive cascade of payments and replacing it with the instant split is a big deal. Very few yet know it’s possible and happening right now among tinkerers and early adopters while the rest of crypto people chase meme stocks.

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