Ethereum Vs paypal

Before you go ahead and initiate a debate between Ethereum and PayPal, try and get a clear perspective of the two. Only then can you better understand how these two popular payment networks have come head-to-head in their financial dealings.

PayPal is an online payment system that operates worldwide and is committed to decentralizing financial services and encouraging businesses to partake in the world economy. With 218 million PayPal users making transactions online through the official website or the mobile application, technology and innovation has come together to create a global mutiny. It not only aids online cash transfer, but also acts as a digital substitute for traditional money orders and account payee checks. PayPal operates as a processor of online payments for different sellers. It allows users to receive cash in more than a 100 different exchanges, hold balance accounts in 25 different currencies, and extract assets in almost 56 currencies.

Ethereum is also a payment network, but unlike PayPal, it has its own crypto token (Ether) that is the basis of all transactions. This, unlike the minted currencies of different states (the ones that PayPal support), are not governed by any legislative body and operates independently and uniformly across the world. Based on Bitcoin’s block technology, it is a public ledger which operates on a private platform and facilitates the mining and exchange of funds. Here are a few points to be noted when comparing Ethereum with PayPal:

  • On an average, Ethereum supports 20 transactions per second, whereas PayPal supports 193 transactions per second
  • Both have their own wallet system for secure saving
  • PayPal has a centralized structure, while Ethereum operates on a decentralized platform
  • PayPal may rewrite your balance statement, but this is not the case with Ethereum
  • PayPal charges a fee of 3% for every transaction made between individuals. Ethereum’s transaction fee is, by far, cheaper than PayPal. There’s no fixed standard as such, as it takes into account the complexity of the transfer (the computation steps and the gas cost) and the bandwidth to calculate the charges.
  • There are a number of countries where PayPal still doesn’t operate, such as Afganisthan, Iran, Haiti and North Korea. This is where the role of Ethereum deserves special mention. It aids all forms of transactions across the globe.