How Tezos’ New Partnership Could Create the New ‘Visa’ of Crypto
25 January 2022 - 10:44PM
NEWSBTC
Last week, a report from Bank of America predicted that smart
contract platform Solana is expected to become the “Visa” of
digital assets. The report explained that while the Ethereum
blockchain was a popular choice due to its security and
decentralization, it suffered in its scalability. As an attractive
alternative, Solana’s prioritization of micropayments regarding
gaming and NFTs allowed for a utility similar to that of Visa, but
for crypto. “Solana could become the Visa of the digital assets
ecosystem. Ethereum’s prioritization could optimize it for
high-value transactions and identity, storage, and supply chain use
cases,” Alkesh Shah told the Daily HODL. It’s not just Bank of
America analysts that saw Solana’s potential. The cryptocurrency
has outperformed Ethereum over the last year, with its market price
skyrocketing 4000% over the last year as well as reaching a market
cap of $47 billion. After launching in March 2020, Solana has
witnessed over 50 billion settled transactions and has had over 5.7
million NFTs minted on its blockchain. “[Solana’s] innovations
allow for the processing of an industry-leading 65,000 transactions
per second with average transaction fees of $0.000025 while
remaining relatively decentralized and secure,” Shah said. Although
Solana has seen a successful debut and made a name for itself in
the media, it isn’t without its shortcomings. In December and
January, the blockchain’s distributed-denial-of-service attacks
caused long wait periods and network congestion. Despite a
competitive sector, Tezos, one of the original proof-of-stake
blockchain, is proving a worthwhile competitor to Ethereum and
Solana. Specifically, through its new CryptoLife app which will
allow users access to their own debit card on which they can use
crypto or fiat, store and transfer crypto with ease, and access an
interest-free loan service known as Cryptodrafts. Tezos’
partnership with Baanx, the FinTech that allows users to buy, sell,
and transfer crypto to anyone instantly across the world with its
debit card, is one particular milestone for the company, giving it
an unprecedented competitive advantage. On January 5, the UK-based
FinTech which has experienced rapid growth over the last twelve
months finally received its full crypto activity registration
approval by the FCA. The approval allows Baanx to enhance its
current services by providing secure Cryptodraft products to users,
allowing holders to receive funding starting at 0% APR by
collateralizing their crypto holdings. Chief Compliance Officer
Mark Evans says the registration is a milestone for the
company. Evans explained that this step forward allowed the
clients of Baanx to rest assured that their digital assets were
being handled by a counterparty that is approved by, and meets the
oversight requirements of the FCA, one of the highest standards
regulatory bodies in the world. Garth Howat, Founder and CEO of
Baanx, adds: “Baanx is a global leading FinTech platform trusted by
international clients like Ledger and Tezos. The FCA approval marks
another milestone of our continued success in providing leading
services that disrupt the FinTech and banking ecosystem. Following
our recent announcement, Baanx is currently working with Ledger on
providing cryptodraft services to the Ledger community with a Q1
rollout across many key countries in the EEA and parts of the US.
The CL card platform, powered by Ledger, will initially support
BTC, ETH, USDT, EURT, USDC, XRP, BXX, BCH and LTC. In the next
couple of weeks, we’re also launching our next partnership with
Tezos, which will also offer cryptodraft to the Tezos community.
This will be an exciting opportunity for BXX token holders as we
drive greater utility into the token with the Cryptodraft product.”
As cryptocurrency continues to be rapidly adopted in the mainstream
financial world, technology is quickly evolving to keep up. One
such advancement is the ability to use cryptocurrency as one would
a Visa card. While a competitive market, Tezos is proving to be a
worthwhile contender in the space, providing a welcome alternative
to Ethereum’s scalability problems and Solana’s network congestion.
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