A microtransaction is a very small-value payment enabled by low fees and fast confirmations, useful for tipping, content, and IoT.
Microtransactions require low on-chain fees or L2 channels to be practical. They unlock new use cases like pay-per-use APIs, streaming payments, and granular incentives.
"Bitcoin Cash's low fees make tipping and small purchases feasible directly on-chain."
"Payment channels aggregate many tiny transfers into occasional settlements, lowering costs."
UX, privacy, and volatility affect adoption. Wallets can batch outputs, use cash accounts, or employ LN-like channel abstractions to improve experience.
"Recurring microtransactions benefit from automated tooling and stable fiat on-ramps."
"Merchants can set minimums or aggregate payments to reduce dust and UTXO bloat."
All terms and definitions may update as the Cryptionary improves.