RE: DTransfer - Cross border payments3 Mar 2022 15:47
My final (and relatively short) post is trying to work out what everything could mean to BLU shareholders. Ive already pointed out the huge possibilities for Cross border payments and DTransfer, but what about pendulum
Unfortunately, at this point it is all conjecture so all I can do is provide the potential market volume and structure. Reading the Polkadot architecture notes (https://wiki.polkadot.network/docs/learn-transaction-fees) every transaction carried out on the relay chain commands a fee to cover the costs of runtime, nodes, resource consumption etc and from what I can gather Polkadot is far cheaper than Ethereum. There is a complicated fee calculation which if I am honest is beyond my capabilities, but it is fractions of a DOT per transaction.
Transactions that take place within a Parachain on Polkadot do not incur relay chain fees (unlike Ethereum) but the cost of a 12 month Parachain lease is estimated to be between 100,000 – 200,000 USD. But Parachain is in control of their own blockchain fees.
Logic would dictate that should Pendulum create a verifiable and credible answer to the Fiat to DeFi problem every Daap (de-centralised application) and his dog will want to utilise the solution rather than the current (expensive and complicated on-off ramp applications)
On the assumption that Pendulums commercial strategy will be a tiny fee (a fraction of a PEN) for every transaction, revenue will be all about the volume of transactions rather that value of transactions (I could be wrong here)
Ethereum network currently processes over 1.3 million transactions EVERY DAY, but this encompasses all variations – trading, lending, borrowing etc, so not all of these will require a Fiat bridge but a hell of a lot of them do.
But this figure is completely dwarfed by traditional transactions. For example the 1 billion daily credit card transactions each day. If DeFi captured 1 percent of credit card transactions that would increase volume 8 times.
Same goes for cross border payments revenue. Forgetting DTransfer, the Pendulum solution itself would be utilised by the Steller network for all the existing Cross border payments (Remember Steller foundation started this whole Pendulum project in the first place) – Steller currently carries out over 800,000 transactions per day!! Plus all the other existing payments Daaps (there are over 3000 DeFi Daaps)
Then there is the general growth considering it didn’t even exist three years ago. I will leave you with a comment from Artem Tolkachev who founded and headed Deloitte CIS Blockchain lab.
“On February 4, 2004, a dorm room project was born and became a $1 trillion company with 3 billion users in 2021 — it is called Facebook, or Meta after rebranding. DeFi has just started, and with the resources and talent flowing into the space now, growing 100x in the next 5 years is not a dream, it is inevitable.”
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