Over the past few days, the commission for the bitcoin of the transaction has dropped to about $ 1 for median-size payments, although the size of the memory has remained relatively high – more than 120 million bytes.
Commission in $ 1
Widely used bitcoin-purse platforms, such as Blockchain, recommend a commission of 55 satoshis for one byte, which is about $ 1 for median-sized transactions. And just a month ago, these transactions cost as much as $ 30, especially on wallets and exchanges that do not support Segregated Witness (SegWit).
Given that SegWit, as explained by Ledger, the manufacturer of hardware crypto-cash wallets, can reduce the commission by another 35 percent, if this protocol is integrated by leading companies such as Coinbase and Blockchain, the commission for ordinary bitcoin payments may fall below $ 1.
Recently, Coinbase, one of the largest crypto-currency companies along with Bitmain and Binance, has been heavily criticized for the slow implementation of SegWit and transaction batches. Several analysts have even stated that a significant portion of the bitcoin network overload is due to Coinbase.
In response, Coinbase CEO Brian Armstrong said that the company will soon accept SegWit and grouping transactions to allow users to make faster transactions with less commission.
Blocks in 2MB without increasing the block size
Representatives of BitGo, a multi-signature wallet, said last week the first 2MB blocks were mined thanks to SegWit-optimized transactions. The wallet showed that with the integration of SegWit blocks can expand to 2MB without increasing the block size.
The first 2MB bitcoin blocks were mined this weekend (see block 505253 https://t.co/0Eeh5Jk05E – 2.217 MB). These record block sizes were made possible by transactions with numerous segwit inputs created on BitGo with super low fees. (photo credit https://t.co/XYUnX6w6ix) pic.twitter.com/PvGqTcTPwz
— BitGo (@BitGo) January 21, 2018
As in Cornell’s research work, the bitcoin network can increase the block size to 1.7MB, and this does not affect node synchronization, given that the nodes in the bitcoin network have greater bandwidth than others, for example, Ethereum.
“Bitcoin nodes typically have higher throughput than Ethereum nodes. Compared to our previous study of 2016, we see that the average bandwidth of the bitcoin node has increased 1.7 times. The higher redundant throughput that the maximum block size can be increased without changing the coefficient of “orphan blocks”, which in turn affects the decentralization, “– is written in the account.
If on chain scaling is implemented, the combination of SegWit with second-level scaling solutions like Lightning in the medium term is expected to expand the bitcoin-blockchain capacity. If the bitcoin network can handle more transactions, it will be less overloaded, which will result in deletion and faster confirmation periods, even for large transactions.
Since it remains unclear whether the commission will remain at $ 1, and the company may require months to adopt SegWit and Lightning, on chain scaling remains only relatively probable in the medium term.