Algorithms using
RingCT and Dandelion++ technologies allow for simultaneous transaction privacy and protection against traffic analysis. Let's consider various types of transfers: P2C (from an individual to a company), O2O (from one individual to another), B2C (from a company to an individual), and B2B (from one company to another).
For P2C transfers, it is recommended to use simple wallets that do not require the involvement of third-party services such as exchanges. Users can buy BTC directly from another individual, giving them cash, and then receive the coins on their private wallet. Alternatively, a user in the Dominican Republic can sell their coins to another individual for cash.
For O2O transfers, simple wallets can also be used, but in this case, users can exchange coins directly without using third-party company services.
For B2C transfers, companies can use specialized wallets that allow for more complex operations such as multiple inputs and outputs. This can result in higher transaction fees, but can also reduce risks for the company.
For B2B transfers, it is also recommended to use specialized wallets that allow for multiple inputs and outputs. In this case, depending on the specific needs of the companies, different algorithms and technologies can be used to ensure transaction security and privacy.
The mathematical solution can be based on an analysis of transaction fees, which may vary depending on the type of wallet, type of transaction, number of inputs and outputs, address types, and other factors. To choose the most optimal solution, the costs of fees and the risks associated with using third-party services should be evaluated.
Sending Bitcoin from Canada to the Dominican Republic or sending to your friend who sits next to you can be cheaper or more expensive depending on the number of inputs/outputs, type of addresses, fee rate, or the type of wallet/service you are sending from. Bitcoin doesn't have such geographical restrictions, nor does the amount affect the final transaction fee.
The most cost affective way is one that doesn't involve any middlemen or 3rd-party services that take a cut. That means exchanges.
You buy the coins P2P. Give the person fiat or cash face-to-face, and they send the BTC to your private wallet. Or they can send immediately to an address provided by your contact person in the Dominican Republic. When the user in Dominica gets their coins, they can also sell it P2P to someone locally in exchange for cash if there is a market there.
- No banks
- No centralized exchanges
- No KYC
- No questions by banks or government agencies about purpose of transactions or source of funds.