In order to test Layer 2 solutions in practice, a proof of concept of a use case suitable for these technologies can be proposed.
The application simulates a possible architecture implemented by a supermarket chain to enable customers to pay with cryptocurrencies.
The factors under analysis for each Level 2 option are as follows:
- The effort the store would have to make to implement the solution, both in terms of software engineering effort and cost
- Usability for customers
- Economics of tokens.
Basically, this example application involves the creation of a parallel payment system to the pre-existing ones.
It thus falls under the case of micro-payments, which were described in the article here.
The term usability refers to the combination of two main aspects: ease of use for customers and cost per transaction.
Regarding performance, an analysis in terms of throughput (TPS) is not sufficient here: transaction latency, i.e., the time each individual user has to wait for his or her payment to be confirmed by the underlying architecture, must also be considered.
Indeed, a payment method that implies an average confirmation time of, say, 10 minutes, is not usable (!!) in a retail context.
While the economy of the token falls under those factors that allow the merchant to not consider cryptos simply as “Monopoly” coins.
Read article --> https://medium.com/takamaka/takamaka-use-case-supermarket-58008fdff2c0
