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Utility | | | | | | | | | | | |
| Scalability / number of transactions |
Theoretically unlimited number of transactions as payments are decentralized (peer-to-peer). |
Theoretically unlimited number of transactions as payments are decentralized (bank-to-bank). |
Technical limits are unknown. Reportedly, VISA processes ~24,000 TPStransactions per second and Mastercard ~5,000 TPStransactions per second on average. |
Technical limits are unknown but high. Relies on card payment networks. |
Technical limits are unknown. Reportedly, PayPal processes 192 TPStransactions per second on average. |
Theoretically unlimited number of transactions as payments are decentralized (transactions processed via Taler exchanges). |
TBC |
No, the blockchain can process only 7 TPStransactions per second and is chronically congested.
The "Layer 2" Lightning Network allows "millions to billions" of TPStransactions per second. |
Theoretically unlimited TPStransactions per second due to variable blocksize (since May 2024). |
No, the blockchain can process only 56 TPStransactions per second, although this is currently sufficient. MWEB (MimbleWimble Extension Blocks) improve scalability by aggregating multiple transactions.
The "Layer 2" Lightning Network allows "millions to billions" of TPStransactions per second. |
Theoretically unlimited TPStransactions per second due to variable blocksize. |
| Payment speed |
Instant |
Depends on the bank or country, can be instant or take several days. |
Instant |
Instant |
Instant |
Instant |
TBC |
10 minutes for one block confirmation.
Instant with the "Layer 2" Lightning Network. |
10 minutes for one block confirmation.
Instant with 0-conf which is relatively safe for BCH due to double spend proofs. |
2.5 minutes for one block confirmation.
Instant with the "Layer 2" Lightning Network. |
20 minutes to fully confirm payment and be able to spend received money (10 block confirmations, 2 minutes per block). |
Transaction fees
(assuming no currency conversion) |
None. |
Depends on the bank or country. Usually no fees, with some exceptions (e.g. for large transfers or certain international payments). |
Depends on the card issuer and country. Various fees, both variable and fixed, are charged and add up to on average around 2-3% of the transaction value. The fees are paid by the merchant/recipient. |
Card payment fees add up to around 2-3% of the transaction value. The fees are paid by the merchant/recipient. Apple furthermore charges the payer's bank a 0.15% fee. |
Various fees are charged, usually paid by the merchant/recipient. A typical fee for a domestic online purchase would be 2.9% + $0.30. Payments to "friends and family" are free. |
Very low fees, a transaction normally costs less than a USD cent. |
TBC |
Depends on the desired transfer speed and the network congestion. Transactions are "competing" to be included in the next block - the higher the fee paid the quicker the transactions will be confirmed (and if the chosen fee is too low, the transaction may fail altogether). Due to the chronic network congestion and small blocksize, transactions tend to cost more than for other cryptocurrencies. During the crypto boom of 2017, average fees reached $60 per transaction. Fees are independent of the transaction value, hence network fees seem low for large transactions and high for small transactions. From 03/2017 to 03/2024 the average fee was about $3.50source but of course this is highly dependent on the BTC/USD exchange rate.
Cheap transactions using the Lightning Network are also possible. But will still incur fees for opening/closing the channel and the Lightning node |
Very low fees. Normally, a transaction costs a few USD cents. |
Very low fees at current network usage. Normally, a transaction costs a few USD cents.
Cheap transactions using the Lightning Network are also possible. But will still incur fees for opening/closing the channel and the Lightning node |
Very low fees. Normally, a transaction costs a few USD cents. |
Decentralization | | | | | | | | | | | |
| Can transactions or accounts be blocked? |
Not possible |
Yes (by bank) |
Yes (by bank or card issuer) |
Yes (by bank, card issuer, or Apple/Google) |
Yes (by PayPal) |
For merchants only (Taler exchanges can refuse to process fund deposits to a merchant or refreshing coins) |
Yes (by government/central bank)CBDCs could empower the state to make it impossible to donate to a certain NGO or could prohibit certain people from purchasing certain items such as a flight ticket or alcohol. |
Not possible if using a non-custodial wallet. |
Not possible if using a non-custodial wallet. |
Not possible if using a non-custodial wallet. |
Not possible if using a non-custodial wallet. |
| Can funds be frozen or confiscated? |
Yes, if physically confiscated. |
Yes (by bank, police or government) |
Yes (by bank, police or government) |
Yes (by bank, police or government) |
Yes (by PayPal, police or government) |
No, but Taler exchanges can reject withdrawal requests (converting Taler coins back into "normal" money) |
Yes (by central bank, police or government)A CBDC can simply become an extension of the surveillance state and it could see citizens fined in a split second for behaviours deemed undesirable. Dissidents and activists could see their wallets emptied or taken offline. |
Not possible if using a non-custodial wallet. |
Not possible if using a non-custodial wallet. |
Not possible if using a non-custodial wallet. |
Not possible if using a non-custodial wallet. |
| Fungibility Fungibility means that it is not possible to identify a specific unit of money and therefore it is not possible for units of money to become "tainted" or accounts/wallets to be blacklisted by the authorities. |
Generally yes, but it is possible to identify specific banknotes by their serial number. |
No |
No |
No |
No |
Yes. Blind signatures are used to ensure money units are indistinguishable and cannot be tracked, blacklisted or tainted. |
No. Each unit of money is uniquely identifiable and all transactions are centrally recorded. |
No. Due to the public blockchain, coins can become "tainted" and wallets can be blacklisted.
Source of funds can be obscured by mixing (CoinJoin), with various downsides.such as minimum funds needed, the time and fees for mixing, and the likely blacklisting of mixed coins from CEX and off-ramping providers |
No. Due to the public blockchain, coins can become "tainted" and wallets can be blacklisted.
Source of funds can be obscured by mixing (CashFusion), with various downsides.such as minimum funds needed, the time and fees for mixing, and the likely blacklisting of mixed coins from CEX and off-ramping providers |
No. Due to the public blockchain, coins can become "tainted" and wallets can be blacklisted. Coins used in MWEB transactions are fungible.By obfuscating the sending and receiving addresses as well as the transaction amounts, the individual units of Litecoin used in MWEB are indistinguishable from one another and therefore can't be identified and potentially blacklisted. |
Yes |
Privacy | | | | | | | | | | | |
| Anonymous accounts/wallets |
(no accounts) |
No, KYC required by law |
No, KYC required by law.
Except for certain prepaid cards paid with cash or crypto.Not available in all countries; limited acceptance with merchants. |
No, KYC (via banks or card issuers) required by law. |
No, PayPal requires customer identification. |
No, requires bank account linkage. Merchants are auditable for tax purposes. |
No (TBC) |
Yes, but most CEXCentralized Exchanges require KYC. |
Yes, but most CEXCentralized Exchanges require KYC. |
Yes, but most CEXCentralized Exchanges require KYC. |
Yes, but most CEXCentralized Exchanges require KYC. |
| Transaction privacy |
Private by default. Even sender and recipient can remain anonymous from each other. |
The involved banks and the government (on request) can view transactions. Sender and recipient know each other. |
The involved banks, the card issuer, and the government (on request) can view transactions. Sender and recipient know each other. |
Google, the involved banks, the card issuer, and the government (on request) can view transactions. The buyer's identity is hidden from the merchant.With Apple Pay, when a transaction occurs, the merchant receives the Device Account Number (DAN) and a transaction-specific dynamic security code, rather than the user's actual card details. Apple does not store or process transaction data on its servers, limiting its knowledge of the transaction details. Google Pay just acts as an intermediary for card payments. When a payment is made, Google uses a virtual card linked to the user's stored card details on its servers. As a result, Google has more visibility into transaction details compared to Apple. |
PayPal and the government (on request) can view transactions. Sender and recipient know each other. |
Taler enables buyer-side anonymity, both from the merchant and other third parties like banks. Merchants' total revenues are recorded for tax purposes. |
The government has direct visibility of financial transactions and the spending of everyone. Sender and recipient know each other. |
Everyone can view transactions on the blockchain.
Using the Lightning Network slightly improves privacy. |
Everyone can view transactions on the blockchain. |
Everyone can view transactions on the blockchain, except for MWEB transactionsMWEB (Mimblewimble Extension Blocks) hides amounts and addresses. The downside is that coins might get blacklisted by CEX and off-ramping providers.
Using the Lightning Network slightly improves privacy. |
Private by default. Even sender and recipient can remain anonymous from each other. View keys exist for opt-in transparency. |
| Wealth privacy |
Only the owner knows his/her total wealth. |
The bank and the government (on request) can see the funds on the account. |
The bank and the government (on request) can see the funds on the linked bank account. |
The bank and the government (on request) can see the funds on the linked bank account. |
PayPal and the government (on request) can see the funds on the account. |
Funds held as Taler coins in a wallet are not visible, but a bank account needs to be linked for withdrawals. |
The government can see the funds on the account. |
Everyone can see the funds of a wallet on the blockchain. |
Everyone can see the funds of a wallet on the blockchain. |
Everyone can see the funds of a wallet on the blockchain, except those relating to MWEB transactions. Transactions that are done on MWEB remains private indefinitely and the corresponding wallet balances are therefore hidden. However, when moving funds from MWEB to the normal blockchain an aggregated transaction is created, thereby making the total funds publicly visible again. |
Only the owner knows his/her total wealth. |
Acceptance | | | | | | | | | | | |
| Useable for in-person payments (e.g. shop)? |
Yes |
No |
Yes |
Yes |
Yes (with phone app, in participating countries) |
Yes, but very little adoption (pilot phase). |
TBC |
Yes, but negligible point-of-sale adoption. |
Yes, but negligible point-of-sale adoption. |
Yes, but negligible point-of-sale adoption. |
Yes, but negligible point-of-sale adoption. |
| Useable for online payments? |
No (except for cash in mail) |
Yes |
Yes |
Yes |
Yes |
Yes, but very little adoption (pilot phase). |
TBC |
Yes |
Yes |
Yes |
Yes |
| Useable for transfers between individuals? |
Yes |
Yes |
No |
Yes (P2P transfers in participating countries) |
Yes |
No |
TBC |
Yes |
Yes |
Yes |
Yes |
Other considerations | | | | | | | | | | | |
| Automatic recurring payments? |
No |
Yes (direct debit, standing order) |
Yes |
Yes |
Yes |
Yes |
TBC |
No (unless supported by wallet app) |
No (unless supported by wallet app) |
No (unless supported by wallet app) |
No (unless supported by wallet app) |
| Chargebacks to protect buyers from fraud? |
No, not possible with physical money |
Depends on country/bankBank transfers can generally not be undone, but in obvious cases of fraud, banks will usually cooperate and attempt to return the funds. In some countries, banks may even be legally required to refund fraud victims. |
Yes, under certain circumstances |
Yes, via card issuer policies |
Yes, under certain circumstances |
No, transactions are final |
TBC |
No, transactions are final |
No, transactions are final |
No, transactions are final |
No, transactions are final |
| Useable without electricity or Internet? |
Yes |
No |
No |
No |
No |
No |
No |
No |
No |
No |
No |
| "Store of Value" narrative |
No, fiat money has an unlimited supply as the central bank can create new money, thereby devaluing existing money. |
No. It is inflationary like all fiat money and additionally can be programmed to expire after a certain time.The government could theoretically give out money that expires within a certain period of time or money that could only be used on certain items, which could be used to induce behaviour that the government is seeking. For example, in the Chinese CBDC pilot program, money has an expiration date of a few weeks because authorities are hoping to drive consumption. |
Yes, deflationary. Fixed maximum supply which is further reduced by lost wallet seeds. |
Yes, deflationary. Fixed maximum supply which is further reduced by lost wallet seeds. |
Yes, deflationary. Fixed maximum supply which is further reduced by lost wallet seeds. |
Probably yes. There is a perpetual coin issuance (tail emissions) with inflation asymptotically approaching zero. Supply is further reduced by lost wallet seeds. |
