Bitcoin Miner Fees Doubled In Period Of Two Months
One of the top bitcoin payment processing firms BitPay CEO and co-founder Stephen Pair releases a blog named as The Bitcoin Free Market on 7 March for discussing the rising fee structure within the network of bitcoin and potential scalability services for addressing the issues regarding the bitcoin blockchain congestion.
The fee market means an ecosystem where the users started to pay higher fees for settling the transactions at a faster rate. It made a market that users completed by consisting higher fees every time for miners for prioritizing specific transactions. Business often utilized the higher fees or the processing urgent transactions, individuals which require to confirm it at the least possible time.
Rising Fee Market with 1 MB Blocksize limit
After the start of 2016, the bitcoin fee market becomes intensified because of the 1 megabyte limit of the bitcoin blockchain. As per the Blockchain, nearly 350,000 transactions are processed by the Bitcoin network in a day. However, there is a blocksize limit of 1 MB on the network to settle 300,000 transactions every day. That’s why around 50,000 transactions get delayed or struck in the bitcoin mempool and wait for confirmations of the miner.
Since the past year, the bitcoin mempool size risen significantly. The rising number of transactions gets stuck or delayed because of the blocksize limit are demonstrated by the exponential expansion of mempool.
A big rise in the miner fees paid by the BitPay can be witness due to the increasing number of transactions. But, the main factor for this abrupt rise in the miner fees is attributable to increased transactions of bitcoins in the general market and the rising fee market.
Presently, the Segregated Witness is the only solution that offers off-chain solutions such as lighting to be activated. While considering Segwit, the businesses, investors, and users must begin to take it as a technology that enables efficient off-chain solutions.