But blockchain technology makes digital transactions involving just a few cents economically feasible. In that way, digital media companies could erect a paywall that you needn't buy a subscription to get past. By giving readers the option of paying for a single article at a price that makes sense, publications could recover revenue from casual readers unable or unwilling to subscribe.
Traditional electronic payment systems can't support transactions this small because they rely on third-party intermediaries, such as banks and credit card companies, that have costs. As a result, credit card companies and digital payment platforms such asVenmo, Stripe, and Paypal typically charge merchants 30 cents plus 2.9 percent per transaction, which are then built into the cost of the goods and services they sell. EvenPatreon, which now charges merchants a lower rate for pledges under $3, still takes 10 cents plus 5 percent of the pledge. Any potential profits from transactions at such low rates are thus wiped out by the fees involved in making them.
They think bitcoin current transaction costs with new queueing methods like Lightening will keep costs down to less than a penny. A step in the right direction, but not enough.
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