The fee for bitcoin transactions fell to $ 1. How long will it last?

The fee for bitcoin transactions fell to $ 1. How long will it last?

Over the past few days, the Commission in the network of Bitcoin dropped to about $ 1 per average transaction, although the size of the bitcoin mempool remains relatively high at more than 120 million bytes.

Commission 1 US dollar

Popular bitcoin wallets such as Blockchain, recommended a Commission of 55 Satoshi for one byte, which is about 1 dollar per transaction average size (the median). Just a month ago, the transaction fee increased to $ 30 for a transaction of average size, this was especially noticeable on cryptocurrency exchanges and wallets that are not used SegWit.

In the company of the manufacturer of cryptocurrency wallets Ledger, I believe that technology SegWit can reduce transactional fees by another 35 percent. Especially if leading companies such as Coinbase and Blockchain, integrate SegWit, in this case, the transaction fee for a regular bitcoin transaction can fall below $ 1.

Recently, Coinbase, one of the largest and most influential companies on the cryptocurrency market, along with other giants of the market – Bitmain and Binance, was criticised for failing to integrate SegWit and group transactions. Several analysts came to the conclusion that Coinbase is largely responsible for overloading of the Bitcoin network.

In response, Coinbase CEO Brian Armstrong said that the company soon integrates SegWit and batch transaction processing that their users can enjoy a faster transaction for a small Commission.

The block size to 2MB

Yesterday blockchain company BitGo, stated that this weekend the network appeared the blocks of 2 MB, due to optimized using SegWit transactions and inputs, created at BitGo, with extremely low Commission. Thus, BitGo has demonstrated that even without increasing the block size to 2 MB, the blocks can expand to 2MB if you use technology SegWit.

However, according to the authors of the study Decentralization in Bitcoin and Ethereum at Cornell University, the Bitcoin network could increase the block size to 1.7 MB and it will not affect the timing of the nod, given that the nodes in the Bitcoin network have a much higher throughput than other baccani, such as, for example, Ethereum.

Nodes in the Bitcoin network usually have more bandwidth than Ethereum. Compared to our previous study in 2016, we can see that the average throughput of nodes in the bitcoin network has increased 1.7 times. A typical node has much more throughput than before. And this indicates that the maximum block size can be increased without affecting the size of the Commission that, in turn, affects decentralization.

In the medium term, if implemented scaling in the network, its synergy with SegWit and solutions of scaling the second level, such as Lightning, greatly expands the possibilities of the blockchain of Bitcoin. If the Bitcoin network can handle more transactions, it will be less congested, which will lead to lower Commission and a higher speed of transaction confirmation.

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