Clear DefinitionsMicrotransactions
1 min read
Pronunciation
[my-kroh-tranz-ak-shuhns]
Analogy
Like paying a few cents to read a single news article instead of subscribing to the entire newspaper.
Definition
Very small value payments—often fractions of a cent—enabled by low‑fee blockchain networks, used for tipping, pay‑per‑use APIs, or in‑app purchases.
Key Points Intro
Microtransactions unlock new business models by making tiny payments economically viable.
Key Points
Low fees: Requires blockchains with sub‑cent gas costs.
High throughput: Networks must handle large tx volumes.
UX integration: Seamless payment flows in apps and games.
Fee abstraction: Meta‑transactions or payment channels.
Example
A content platform charges 0.001 USD worth of stablecoin per article read, settled instantly on a Layer‑2 chain.
Technical Deep Dive
Implement via state channels: open channel with deposit, then exchange signed off‑chain vouchers for micro‑payments, and settle net balance on‑chain to reduce fee overhead.
Security Warning
Many small transactions increase attack surface; monitor for spam and dust attacks.
Caveat
Channel management adds complexity; require robust UX to hide plumbing.
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