Metal (MTL) is a name you are likely to become familiar with very soon… Since 2002 when eBay first purchased PayPal the value has not stopped increasing. At the time of writing PayPal stands at a market cap of $81 Billion. This year the overall value of the cryptocurrency market has surpassed that figure. More importantly the Market cap of Bitcoin alone has surpassed the value of PayPal this year. This demonstrates further the shift towards blockchain-based solutions to payment protocols. The biggest challenge for the different cryptocurrencies is to make user friendly interfaces without any need to understand the technology that is securing transactions.
It is estimated that somewhere between 0.15 and 0.5% of the entire global population are currently Bitcoin users. This could be due to a number of different factors:
- Lack of understanding
- It’s not very user friendly
- The price is extremely volatile
- General belief that Bitcoin is used for underground/illegal activities
- Unccertainty (will transactions complete)
Metal is a new project which is looking to address some of these key issues in the blockchain/cryptocurrency industry. In recent times it has drawn comparisons to PayPal.
What is Metal (MTL)
Metal is a blockchain-based system that’s allows users to convert their fiat currency into cryptocurrency. It uses a “Proof-of-Processed-Payments” system which allows you to identify users, whom you can them transact with on a peer to peer basis using cryptocurrencies. Metal has been compared to PayPal as it offers a user friendly interface which is a payment bridge between Bitcoin and other cryptocurrencies.
On top of this users benefit from rewards for converting their fiat currency in cryptocurrencies. “Metal expects to save consumers 4-5% on all purchases”
What is the significance of Metal
Created in 2009 Bitcoin has sparked what could be described as a technological revolution. It has never been hacked in those 8 years to date by creating the first ever truly trust-less payment system. However, one of the main criticisms of Bitcoin to date is the Proof-of-Work system it uses which rewards miners for securing the network. This has caused the mining industry to become somewhat centralised as mining pools now input the vast majority of the CPU power that goes into validating the transactions.
This means that for everyday users there is no financial incentive for using Bitcoin, it is rather held as an investment. While this does help increase demand by reducing the supply it could lead to mass adoption not occurring. Metal will reward users in MTL tokens for converting their fiat currency in to cryptocurrency and for sending everyday transactions. This acts as the incentive to use Metal at the same time as incentivising users to leave fiat currency in favour of digital currency.
Brief summary of the features benefits of using Metal as a payment processing platform are:
- User Friendly
- For Metal merchants
- Customer paying in Metal
- For consumers in the form of heavy discounts on pay features
- Like WordPress, Metal will allow users to add a Metal plugin to their website or apps
- Lending platform through an escrow based syetem
- Escrow-based multi signature wallets
- Blockchain-based system, this offers so much more security than other payment platform currently being used
Overall the project looks like it could make serious inroads into this industry. PayPal and other well known payment platform’s are yet to integrate blockchain technology and this could prove to be a deciding factor for the success of Metal. Furthermore, it will be one of the first project that will create a user friendly interface for cryptocurrencies. It will cut out the need to educate yourself on how to safely and securely transact in cryptocurrencies.
The system will offer all of the benefits of PayPal including the transaction speed (instant payments) with the added benefits of greater security and rewards systems for using Metal.
It is also worth noting that one of the investors in Metal is Erik Vorhees, the founder and CEO of Shapeshit.io. He has previously founded Satoshi Dice and Coinapult. Let us know your thoughts on Metal and whether you think it can reach the same heights as PayPal.
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