The brains behind Vinci (VINCI) claim to have a solution to the great blockchain scalability problem.
Existing blockchain solutions, such as Bitcoin (BTC) and Ethereum (ETH) are hard to scale. To explain all the encryption and security measures on today’s blockchains limit the size of the blocks. Consequently, the small block size limits the speed and capacity of many blockchains.
For example, Blockchain.com estimates Bitcoin’s blockchain was processing 3.667 transactions per second (TPS) on 1 June 2020. Hence, a Bitcoin payment solution could crash; or take hours to complete a transaction, if it tried to process four TPS.
As a result, it could a Bitcoin gaming platform several hours to process a few hundred purchases. Personally, I cannot imagine gamers waiting several hours to buy their weapons and digital tools for the next round.
Why Scalability could Kill Blockchain and Cyprotucurrency
Therefore, the blockchain scalabilty problem gives commercial users a powerful incentive not to accept cryptourrency. Amazon (NASDAQ: AMZN); for example, will not want to use a payment solution that slows its platform.
Conversely, I think cryptocurrency’s major competitors in electronic payments; such as credit card companies and banks, have solved the scalability problem for fiat currencies. Notably, Visa (NYSE: V) claims its payments platform could process over 65,000 TPS in 2018.*
Moreover, Visa claims its platform works with over 160 fiat currencies. Plus, Visa claims to serve over 46 million merchant locations and 15,900 financial institutions in over 200 countries.
Theoretically, a gaming platform could accept 65,000 Visa payments in 160 different fiat currencies. Additionally, the gaming platform could accept Visa payments from 15,900 financial institutions around the globe.
To achieve wide adoption, I think a blockchain or cryptocurrency payment solution will need to rival or match Visa’s capabilities. In particular, the blockchain payment solution will need to be as fast as Visa.
How Vinci tries to solve the blockchain scalability problem
The Vinci Foundation is trying to build a scalable cloud-based decentralized blockchain platform.
The Foundation hopes to make money by offering cloud-computing services and decentralized financial services through that platform. A new architecture of distributed internet services with shards operates Vinci’s blockchain platform.
A long-term goal at Vinci is to create a sidechain businesses all over the world can use. To elaborate, a sidechain is an encrypted shortcut around the internet or the blockchain. Sidechains; such as EOS (EOS), allow higher speeds and greater capacity than blockchains. However, Sidechains are less secure than blockchain.
The ultimate plan at Vinci is to build an ecosystem that offers several services that will enable cloud computing on the blockchain. Those services; include the Vinci Transaction Mixer, the Vinci Directory Access Protocol, Vinci Network Computing, Vinci Python, and the Vinci Backup Service.
Python is a popular high-level general-purpose programming language. The idea behind Python is to make it easy to write clear and logical code for small and large projects. Python is often used to create artificial intelligence (AI) and other groundbreaking solutions.
Can Vinci Make Money?
Hence, I think they are designing Vinci to be compatible with AI. Therefore, AIs could operate in the Vinci blockchain and ecosystem. Thus, you could use the Vinci Token to pay for AI services in Vinci’s cloud.
Importantly Vinci is planning to offer some services that are moneymakers, including cloud computing. Impressively, Amazon Web Services generated $10.22 billion in revenues during first quarter 2020, CNBC estimates.
Moreover, CNBC claims AWS’s revenues grew by 33% between 1st Quarter 2019 and first quarter 2020. Additionally, Microsoft’s (NASDAQ: MSFT) Azure cloud revenue grew by 59% in first quarter 2020, CNBC claims.
Is Vinci for Real?
Thus, Vinci could enter a lucrative business with a high-rate of growth: cloud computing. However, there is no evidence any of Vinci’s technology works. In fact, the Vinci team is still working on its solutions.
They hope to release the Vinci Transaction Mixer (VTM) service and the Vinci Backup Service (VBS) in 4th Quarter 2020. However, they could release the Vinci Python and Vinci platform in 2nd Quarter 2020.
I think there it is impossible to tell if Vinci can solve the blockchain scalability problem until its services are available. Thus, any value Vinci has at this point is purely theoretical.
Is Vinci a Good Cryptocurrency?
Mr. Market; however, disagrees. He gave Vinci (VINCI) a Coin Price of $1.25, and a 24-Hour Market Volume of $1.6 million on 3 June 2020, CoinMarketCap estimates.
Unfortunately, CoinMarketCap did not provide a Market Capitalization for Vinci on 1 June 2020. Therefore, I caution all speculators to avoid Vinci until a Market Cap is available.
To explain, it is impossible to ascertain Vinci’s value without a market cap. However, I consider Vinci a new cryptocurrency to watch because of the claims its creators make. If those claims are true, Vinci could become a valuable altcoin.
*Source Visa Fact Sheet: https://usa.visa.com/dam/VCOM/download/corporate/media/visanet-technology/aboutvisafactsheet.pdf
Originally published at https://marketmadhouse.com on June 3, 2020.