Microtransaction
A microtransaction is a very small-value payment enabled by low fees and fast confirmations, useful for tipping, content, and IoT.
- Also known as
- micropayment
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.
UX, privacy, and volatility affect adoption. Wallets can batch outputs, use cash accounts, or employ LN-like channel abstractions to improve experience.
Related terms
4 linkedExplore connected entries beyond the alphabetical index.
Fee
→A transaction fee is the amount paid for block inclusion, compensating block producers and discouraging spam.
Fee Rate
→A fee rate is the transaction fee per unit of size, such as satoshis per vbyte, used to prioritize block inclusion.
Lightning Network
→A Bitcoin Layer-2 payment channel network for fast, low-value payments that settle back to the base chain.
Layer-1
→The base blockchain layer that defines consensus, transaction validity, settlement, and data availability.
All terms and definitions may update as the Cryptionary improves.
