Cryptocurrencies became more popular due to the failures of VISA

Last week, residents of Europe experienced an extremely unpleasant incident involving equipment malfunctions in the VISA payment system. Many buyers were forced to defend huge lines in supermarkets. This was due to the fact that people could not pay by cashless settlement.

One of the dissatisfied users of the VISA payment system, who could not use his plastic card, commented on the situation on June 1:

“We spent the whole day on the fresh air, and when we landed at a pub in Kidlington, we found out that we could not pay for a holiday dinner, because something happened with the payment systems.” We had about 20 pounds of cash, so we had to take only a drinks. “The problem is that there was not any single ATM around us for several miles.”

Another VISA client, Debra Eldar, from Glasgow, also shared her unpleasant experience:

“I was very uncomfortable, I gave the waiter for a tip the last 14 euros in cash that i had. I am very nervous, because soon I’m flying home to Toulouse, and most likely I will have to stay for a while in airport, because I do not have money for a taxi, and I can not use the card.”

Soon, when payment systems once again starts working, VISA still gave their explanations about what happened. As stated in the company, inconvenience was caused to users due to equipment failure.

This situation further strengthened the rhetoric of crypto enthusiasts, who only actively promoted their views and opinion that cryptocurrencies should replace traditional payment systems. Decentralized nature of cryptocurrency, they said, will never lead to the same problems that VISA and other companies have. The lack of a centralized network of servers, according to crypto enthusiasts, is the key to the stability of cryptocurrencies as a payment facility.

Like many other payment systems, VISA relies on a private network of servers. If these servers fail during a hacker attack, or some kind of malfunction, millions of users around the world are affected. Although these servers usually have a fuse system that prevent similar problems, the equipment does not always cope with the increasing load, which leads to new problems. Moreover, after the failure of the servers, it takes some time to fix the problems, which is why many users are forced to lose access to their funds for indefinite periods. In this regard, many remain unhappy with the operation of payment systems.

This is different with decentralized digital money. In a decentralized network, nodes are located around the world, so if in one area the equipment fails, the whole network is not turned off, and transactions are simply processed on other nodes. The only problem with blockchain technology is the scalability of the network, and therefore cryptocurrencies suffer from a low speed of transactions with tokens. However, this problem arises only in cryptocurrencies with a large user audience, like bitcoin.

crypto paymentsHowever, in addition to this cryptogigant, there are also tokens on the market, based on much more advanced technologies: Tron (TRX) and Zilliqa (ZIL) and Ethereum (ETH) for example. Their blockchains have such a speed of transactions, which sometimes can envy even VISA.

In conclusion, it should be said that panic caused by VISA problems in Europe last week could be avoided if payment systems made integration with cryptocurrencies. Source:

View the full story

Comments (No)

Leave a Reply

+ 55 = 61