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glossary

Definitions and terminology related to cryptoeconomics, blockchain and distributed ledger technology.
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Micropayment

Micropayment is a very small online payment that is usually not feasible through traditional money transfer mechanisms like credit cards due to the fees being a significant percentage of the transaction. Micropayments are used in a variety of contexts, from paying for access to a single article online to tipping someone on the internet. Several companies such as Flattr, PayPal Micropayments and ChangeTip provide micropayment support and solve specific use-cases. Bitcoin makes micropayments easy to implement and send without involving any third-party and companies like ChangeTip use Bitcoin to implement their micropayment protocols. Some other cryptocurrencies have also been successful in micropayments, most notably Dogecoin when it was first introduced. Bitcoin fees make it hard to send fractions of a cent as value, but this is still possible with some other cryptocurrencies.