why do you know this?Its not more effecient to have more nodes
i was wolfishly hoping youd just inadvertently outed yourself as a nerdI read what stan said and assumed the opposite must be true if it was making someone scream
Yeah I talked about how that works above.Also there may be some way to profit from this friction, which would make more sense as to why things haven’t improved.
Yeah somehow this didn’t register to me, but it does make sense now that it has.But why do bank transfers take so long? I think they could be instant for the customer of the bank wanted them to be. They create a period of limbo in which the money is in neither the sender or receiver account - it is earning interest for the transferring entity. Add this together for every transaction and it makes a lot of money.
Hawala bank transfers are basically instant so why not wire transfers?
I think that some money leaves account A and turns up in account B three days later. That was the historical time for cheque clearing or whatever and so they stick needlessly to that schedule, but in those three days when the money is not in A or B, the bank has it and is earning interest on it.Do you know how banks profit from long transaction times?
I thibk I mean that they just put it in an account that pays interest, and they do that every day with a million transactions, so even though each sum is only there for a short while, the balance is always high and the interest earned is significant.By “earning interest in it” you mean it is functioning as additional liquidity for the loans they are giving out? As in, the central incentive for banks to allow depositors to earn interest, because the bank can charge greater interest on loans?
But I’m pretty sure the whole paradigm of commercial banks is that they give loans at a given rates, then kick back a portion of that as interest paid to depositors, with the banks pocketing the difference after service costs.I thibk I mean that they just put it in an account that pays interest, and they do that every day with a million transactions, so even though each sum is only there for a short while, the balance is always high and the interest earned is significant.
The payments go through quickly, just take a while to settle sometimes. Not sure why, aside from what @IdleRich just explained.What mad universe do you boys live in where your bank doesn't do fast payments
The thing to me is this, most people are happy enough with a bank lending and borrowing at different rates, they see it as something like a shop buying goods at one price and selling at another, they gotta make a profit somehow right?But I’m pretty sure the whole paradigm of commercial banks is that they give loans at a given rates, then kick back a portion of that as interest paid to depositors, with the banks pocketing the difference after service costs.
As a depositor you help the bank by increasing their liquidity, expanding the pool they have to back up the loans they give, hence the risk involved in granting the bank custody over your funds, risk largely covered by FDIC in the US, maybe some equivalent in other countries.
Not that I’m assuming you don’t know this, I’m just breaking down my own understanding, so that any incorrect understandings I have can be identified.