Bitcoin's fees explode in the middle of BRC-20 Memecoin Mania, Miners Benefit
Bitcoin's fees explode in the middle of BRC-20 Memecoin Mania, Miners Benefit
The blockchain from Bitcoin was flooded with volume at the weekend by transactions with so-called "BRC-20" procedural figures-an emerging standard for the issue of fungible tokens on Bitcoin.
The increase had the network fees exploded up to the point where the income from transaction fees for miners briefly exceeded the natural block subscription for the first time since 2017.
meme token on Bitcoin
according to dune analysis have already been carried out over 3.7 million BRC 20 order number transactions, compared to only 631.630 Non-BRC-20 order number transactions.
A separate dashboard shows that there are now over 4.7 million ordinary inscriptions on Bitcoin, most of which have been published in the past two weeks. This indicates that a large part of the recent activities are not as much related to Ordinales NFTs as early February, but with new fungal assets created by the BRC 20 standard.
BRC-20 is a "funny experimental standard that shows that you can create off-chain balance states", the Twitter author Domodata continued gitbook if revealing The innovation on March 10th. "This is an extremely dynamic experiment, and I strongly advise against making financial decisions on the basis of his design."
The author added that the idea of spending assets on Bitcoin was "not new" and that Taro-a flash-based network-based solution for the output of Bitcoin assets-is "clearly a better solution". Despite his personal reservations, BRC-20 has started. Data from BRC-20.IO show that market capitalization for tokens has exceeded $ 720 million and that its cumulative trading volume has been over $ 132 million over the past 24 hours. At the top is a token called "Ordi", followed by a Bitcoin-based version of the Memecoin Pepe and another name "Mememe". Transactions for these new memoins compete with ordinary BTC transfers around Bitcoin blockplace and create a highly competitive fee market that makes the average transaction more expensive. Data from ycharts shows that the average Bitcoin transaction fee has increased on Monday to $ 19.21, compared to only $ 2.90 last week. In the meantime, according to Mempool.space, over 460,000 transactions within the blockchain are still waiting for confirmation. The increase with the BRC 20 examination figures, since glass node data indicate that taproot-related transactions are available All on-chain transactions, in contrast to only 1.5 % at the beginning of the year. The overloaded network makes transactions with Bitcoin more expensive and slower, but has led to a massive increase in the revenue of the miners in the past few days. In fact, the associated miner at Block 788695 withheld 6.7 BTC of fees, which is larger than the constant reward of 6.25 BTC, which is attached to each block. Most recently there was such a flip in 2017. Many in the Bitcoin community are thrilled that BRC-20 token will drive up the fees in this way, as this means that Bitcoin will have a profitable fee with mining incentives, even if the blocks subsidy shrinks in the coming decades to almost zero. In the last ~ 20 minutes, 2 more blocks were found by miners, which contained transaction fees that were higher than the block subscription. Coins move from degenerated Memecoin players to #bitcoin mining workers. - Joe Burnett (🔑) ³ (@iiicapital) 8. May 2023 However, others see the development as a denial of service attack on Bitcoin, which makes transactions impossible for less wealthy population groups in developing countries. "Knots can decide at any time to make blocks of miners that contain the transactions that they do not consider to be valid," suggested Francis Pouliot, CEO from Bitcoin and critics of Ordinals, on Twitter. "The last way out and could be chaotic, but it is always possible." . The fees shoot in height