> There are disadvantages to using Layer 2 of a blockchain, and you are ignoring the costs of on-boarding and off-boarding from cryptocurrency.
Yes, it's not a panacea, but has the potential to be far lower than the current status quo.
> In this case you're speaking of doing Patreon on the blockchain, not merely using cryptocurrency transactions? How would that work and how wouldn't it be cheaper and easier to do with a public, possibly federated, server running a FOSS Patreon software?
It can be both; using smart contracts to facilitate payments and identity, and some form of federated or decentralized protocol for communication and discovery (e.g. Farcaster).
> Are settlement times going down with FedNow? And even CC transactions take seconds, do the content creators care that much about getting the money immediately and isn't that a greater fraud risk?
Not everybody lives in the USA, and yes creators would likely appreciate lowering payout schedules from days to hours.
> I admit to not being familiar with the situation but aren't all transactions public on the blockchain?
Yes, like Monero but with smart contracts and verifiable computation via ZK-SNARKs. It is possible, but in its infancy: see Aztec and Aleo.
> What about illegally acceptable revenue streams? How would such a platform stop being banned due to illegal content?
The primary hosts can choose not to serve the illegal content; it would redirect the behaviour to alternative platforms. Similar to a popular Mastodon server choosing not to allow NSFW, but other servers might allow NSFW.
Yes, it's not a panacea, but has the potential to be far lower than the current status quo.
> In this case you're speaking of doing Patreon on the blockchain, not merely using cryptocurrency transactions? How would that work and how wouldn't it be cheaper and easier to do with a public, possibly federated, server running a FOSS Patreon software?
It can be both; using smart contracts to facilitate payments and identity, and some form of federated or decentralized protocol for communication and discovery (e.g. Farcaster).
> Are settlement times going down with FedNow? And even CC transactions take seconds, do the content creators care that much about getting the money immediately and isn't that a greater fraud risk?
Not everybody lives in the USA, and yes creators would likely appreciate lowering payout schedules from days to hours.
> I admit to not being familiar with the situation but aren't all transactions public on the blockchain?
Yes, like Monero but with smart contracts and verifiable computation via ZK-SNARKs. It is possible, but in its infancy: see Aztec and Aleo.
> What about illegally acceptable revenue streams? How would such a platform stop being banned due to illegal content?
The primary hosts can choose not to serve the illegal content; it would redirect the behaviour to alternative platforms. Similar to a popular Mastodon server choosing not to allow NSFW, but other servers might allow NSFW.