Micro transactions is one thing that can be easily provided by a traditional centralized ledger provider that is funded by Monero.
Won't scale. I explained why if you had clicked my quote to read the rest of my post.
The first thing to understand here is that micro transactions by their very nature fall way below any AML/KNC regulatory requirements. Someone funding an account with say 10 USD, in order to pay for say 10,000 page views at 0.001 USD per page view is not the concern of financial regulators.
The merchants receiving the payouts do fall under AML/KYC. And any MSB has to register with FinCEN. Also criminals will structure their microtransactions across multiple anonymous user accounts to side-step limits, thus your point really does not apply.
This issue with micro transactions with the current fiat payment systems is not the actual micro transactions themselves but how do you fund the account in the first place
Yes. Credit cards can be incentivize massive fraud especially if they can pay themselves as merchants.
But the scaling problem of centralized ledgers is just as onerous an issue too.
, especially if anonymity is desired and this is done across international boundaries? As for the micro transaction provider themselves there is no reasonable reason for them to keep track of who sent 0.001 USD to whom. If they do not have a strict privacy policy then the market can find another provider. Filing millions of suspicious transaction reports for amounts under 0.01 USD each is not a valid reason and could easily land the provider who does this into serious legal trouble with the agency that was the target of such a denial of service attack.
Now you understand why a centralized ledger (and a centralized aggregator of funds) will never scale nor work in practice due to FinCEN requirements to avoid criminal structuring.
The microtransaction thing is solved by cryptonite (the coin). I forget its three letter thing. I don't know exactly how they coded it, but the ledger is broken into 2 parts as I understand it. 1 part is an account database (non-ledger, i.e. malleable) which maintains balances of what people own, and then there's a rolling standard blockchain. This nullifies the scaling problem in terms of storage. In terms of relay and conf times, thats a different issue.
IMO, this type of distributed-database + mini-blockchain design will be the next big thing in Monero post RingCT, adaptive fees, etc. Goodbye blockchain bloat. Hello forever money.