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CoinBase criticized for spamming Bitcoin Network

January 16, 2018 16:12
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Last week, CoinBase was heavily criticised by everyone in the industry for clogging up the Bitcoin Network. CoinBase is the biggest Bitcoin Exchange in the world with more than 10 Million users and the community is disappointed for the exchange does not take basic steps to help Bitcoin.

Ever since Bitcoin transfer went to a high of $50, various methods were deployed by exchanges to manage this. Two common solutions were SegWit and Batching transactions.

A Mempool is used by the Bitcoin network as the holding area for unconfirmed transactions. When the mempool is clogged up, it makes it difficult for miners to confirm transactions. The volume of transactions on Bitcoin has halved in the past month, but not so much with the fees.

CoinBase contributes the highest volume of transactions on the Bitcoin network. Industry experts have criticised them for not implementing SegWit and Batching Transactions. Segwit was activated on the Bitcoin network a few months which increased the block size by a small amount, thus increasing the transaction speed. Batching Transactions is a practice followed by exchanges where they transmit multiple transactions at the same time. This ensures faster transaction speeds with lower fee.

CoinBase CEO Brian Armstrong tweeted out that they were working on bringing Segwit and Batching transactions. But no date on it yet.

Segwit and Batching transactions should ease up the Bitcoin network to some extent. But even with that, do not expect the fee to come down drastically. Bitcoin would have to go through major changes before that happens.

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