In today’s fast-paced world, keeping up with numerous internet transaction techniques is critical. But the most important thing is how to choose which one is superior to the other.
Everyone these days has a Visa/Mastercard and possibly some crypto. The primary function of a Visa and Mastercard is the global payment transaction of fiat currencies, but there are many differences between them. Jax.Network is on the way to becoming a global decentralized transaction medium, or more precisely, secure cryptocurrency for day-to-day transactions.
It is crucial to know the features that separate Visa, Mastercard, and Jax.Network from each other. Let’s take a closer look at them now.
It is essential to learn the difference between these two platforms. In the absence of proper distinction, one can get puzzled by the heavy lifting that choosing a payment method requires.
|Parameters of comparison||Visa||Mastercard||Jax.Network|
|Transaction rate||24,000 per second||5,000 per second||Improved scalability provides higher rates, comparable to Visa/Mastercard when the network scales. Fast transaction processing through Layer 2|
|Transaction fees||In the US: from 2.44%+$0.1 to 4.94%+$0.2. This rate includes the processing and interchange fees||In the US: from 2.44%+$0.1 to 5.14%+$0.2. This rate includes the processing and interchange fees||The minimum fee of around 10 cents per 1KB of shard chain block space. But compared to the other methods, this is brilliantly low|
|Worldwide transactions||Easily done, but costly due to exchange rates||Easily done, but costly due to exchange rates||Easily done, no exchange rate|
|Fundamental principle (involvement of mediator)||Involves banks and other channels of payments that act as mediators||Involves banks and other channels of payment that act as mediators||It is independent of mediators and is definitely among the best methods suited for private and hassle-less payments|
|Market share||48.50%||31.70%||The network is yet to be functional|
|Global acceptance||Accepted globally||Accepted globally||Decentralized network, working globally|
|Supporting currency||All international and national fiat currencies are supported||All international and national fiat currencies are supported||Cryptocurrencies and stablecoins are supported|
|Methodology||Payments are made using the bank accounts that are linked||Payments are made using the bank accounts that are linked||Payments are made using wallet addresses along with a private key or Quick Response code. No bank account needed.|
|Transaction irreversibility||Reversible||It is not possible||Irreversible, i.e., can only be refunded by the party that has received JAX coins. Since no mediator is involved, it is not possible to reverse the transaction.|
Pros and cons
It is important to discuss the pros and cons of each payment gateway and equally necessary to comprehend.
- Visa and Mastercard are significant entities for fast payments while Jax.Network is fast but not in comparison. The reason is that crypto payments are slow. This is due to their decentralized nature. A transaction is fully confirmed only once several new blocks are added to the blockchain. Fully decentralized networks, including Jax.Network, can’t compete in terms of speed with centralized payment systems. However, solutions exist to fasten transactions and have a confirmation time on par with Visa/Mastercard. This requires some centralization at the wallet level. If users need fast transaction confirmation they can use the Jax.Network Layer 2 solution, if not, they can still use the fully decentralized network.
- The real difference boils down to the fees that are extracted from the user by the payment gateway. It is a known fact that Visa/Mastercard levy substantial transaction fees and even higher for global transactions. This is not the case with Jax.Network. A meager sum is extracted that is given to the miners as a fee for the validation process.
When to choose which payment method?
Jax.Network represents cryptocurrencies, while Visa and Mastercard represent fiat currencies. Both have their disadvantages and advantages, but Jax.Network appears to be the safest bet in the long run. Visa and Mastercard have been in circulation since the beginning of the global transaction system, but Jax.Network is way better in terms of security and lower transaction fees.