Dash announced an upgrade to reduce most transaction fees to 0.3 cents, boasting that it has upgraded its scaling as Bitcoin struggles under heavy use.
Dash ($DASH), a decentralized digital currency, released an upgrade to its blockchain code Wednesday that promises to reduce most transaction fees to less than a third of a penny, boasting that it has upgraded its scaling capabilities as Bitcoin struggles under the load of its users’ activity.
The change reduces regular transaction fees by 1,000 percent, so now any transaction will cost a flat rate of .00001 Dash. At the time of this writing, that is the equivalent of .0032 U.S. dollars. Premium transactions with faster confirmation will cost ten times that amount.
“InstantSend transactions, which confirm online or at the Point Of Sale in less than two seconds, will be reduced to a remarkably low 2.8 cents each (0.0001 x Current Dash Price),” writes the EconoTimes. “InstantSend transactions historically cost 0.001 Dash or 28 cents. In contrast, bitcoin carries transactions costs of about $6 USD per.” Since Dash’s upgrade, the price has bounced such that the fee for these premium transactions would be the equivalent of 3.2 cents.
In contrast, most credit and debit cards charge a flat fee of at least twenty cents — plus a percentage of the product price, averaging about three percent.
The upgrade also affects the speed and volume of transactions, with Dash now boasting it can handle 48 per second while Bitcoin remains stuck at seven. That number is nowhere the average 2,000 that Visa gets or the 1,500 that blockchain firm Ripple boasts, but it still means a capacity for over four million transactions a day — not bad for a technology still in its infancy.