A micropayment channel is a method that allows users to make small transactions without recording each one on the main blockchain. Instead, these channels enable multiple payments to occur off-chain, enhancing efficiency and reducing fees.When two parties open a micropayment channel, they create a transaction that locks a certain amount of funds in a separate address. They can then exchange small amounts of value between themselves by updating the balance in the channel without the need for each transaction to be validated by the entire network.Once the final amount is settled or the channel is closed, the updated balance is recorded on the blockchain. This approach minimizes congestion on the network and lowers transaction costs, making it suitable for services where small payments are frequent, like tipping content creators or paying for digital services.Ultimately, micropayment channels enhance the usability of cryptocurrencies for everyday transactions by making them faster, cheaper, and more efficient.
PostFinance Introduces Crypto Staking, Expanding Digital Asset Offerings
Swiss state-owned bank PostFinance has added cryptocurrency staking to its digital asset services, becoming the first systemically important bank to