The slow down in the crypto space which shaved off nearly 70 per cent of the value of most of the cryptocurrencies has not become a deterrence for developers to stop working on its development. In fact, data suggest some key positive development around the network despite the slowdown.
The congestion level in Bitcoin Network has reached a peak of 95 per cent last week, while transaction fees remain as low as $0.1, even for large transactions valuing millions. Compared to 2017 peak congestion levels of 85 per cent, network fees are nominal and below year-ago levels.
Cryptocurrency analyst, Willy Woo who first published the graph relating to the congestion in Bitcoin network said that:
“Meanwhile… during the bear market no less… Bitcoin’s blocks peak above 95% full without anyone noticing, the fees and confirm times remain nominal. Bitcoin of 2018 is not Bitcoin of 2017. The protocol is quietly improving.”
In the Bitcoin network, a transaction is confirmed when its network nodes or miners reach a consensus to mine a block and a block of 1 MB size can fulfil 2000 transactions, but currently, it is below this level. The network fees and confirmation time goes up as BTC volume surges, the main reason why in 2017 network witnessed a spurt in transaction fees to an all-time high level.
Bitcoin network is severely lagging behind traditional counterparts like VISA which can process tens of thousands of transactions per second against seven transactions per second for Bitcoin. The scalability issues are still plaguing the network despite attempts to fix the issues by launching Lightning Network, which used to conform micro-transactions off the grid and put the record on the main blockchain at the beginning and end of their execution.
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