Cryptocurrency

Congestion in the network of Bitcoin decreases gradually

The congestion experienced in the network of Bitcoin from just before halving it seems to be decreasing constantly since last may 23. Last may 13 in the meempool of Bitcoin the weight of a transaction was 1.521 vBytes per second, and had to be confirmed 29.717 transactions for each 1 sats/Vbyte. Then, on may 20, the weight of each transaction was 2.475 vBytes per second, and had to be confirmed 64.765 transactions for each 1 sats/Vbyte. The values listed show how the network of Bitcoin was congestionĂ¡ndose increasingly after the occurrence of the third halving of the network. However, in the late hours of 23 may, the congestion that had the network began to diminish, registering 13.432 transactions per commit for each 1 sats/Vbyte. From the said date until the time of writing this news, the average of this metric has been 21.988 transactions for each 1 sats/Vbyte. According to a report published by Glassnode, the prioritization of transactions with higher fees on the part of the miners, in order to compensate for the drop in revenues from mining after the halving, this has been one of the reasons for the increase of transaction costs. Although they point out that the decrease in the cost per transaction in the last 5 days probably also has been the result of a decrease of the difficulty. “In spite of this, it is likely that you do not see a full return to previous levels of income from fees of mining”, says the team Glassnode, “as the miners will need more time to adapt to the new economic realities of a reward in block 6.25 BTC”. According to the information provided by Blockchain.info since the 28 of April the average cost per transaction has already exceeded USD 1.3. This metric continued to increase gradually until reaching a maximum of USD 6,6 19 may. At the time of writing this news the average cost per transaction is around USD 3.

The recovery of the network

The relationship between the average cost of transactions and the congestion of the network of Bitcoin lies in the fact that, when the network is congested, users pay highest fees for their transactions to be verified with as soon as possible. The costs are registered in the network after the halving not seen on the network since June of 2019. Although the current values indicates a partial recovery of the network, it is necessary to consider the processing power of Bitcoin in these moments. On may 9, the hash rate was 120,63 exahashes per second, while in the present round the 91,49 exahashes per second. This decrease of the processing capacity of the network is derived in a setting of difficulty of mining Bitcoin. Breaking News recently reported that a data analyst is pointing to an entity called “crazy 1 or 1′ as one of the key factors of network congestion. As reported by the analyst, the number of transactions led to Crazy 1 or 1 pay 104 BTC in commissions. The amount paid in commissions came to represent, for short periods of time, between 10% and 12% of the fees collected by the miners.

About the author

Caroline W.

Caroline W.

Caroline is passionate about learning languages, cultures and the Internet. She has years of experience working at international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2018, she joined CurrencyMarket24 as a writer.

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