The average commission on the Bitcoin network exceeded $37, reaching a yearly high. Expert opinions regarding the cost of sending transactions are divided.
Data: BitInfoCharts.
The increase in blockchain fees was caused by another wave of activity in the Ordinals segment. This has led to increased demand for block space. At the time of writing, there are over 280,900 transactions awaiting confirmation in the mempool, according to Mempool.space.
Miners won and users lost?
The beneficiaries were miners, whose income jumped to the levels of Bitcoin quotes at historical highs around $69,000.
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6.25 btc fees, 6.25 btc subsidy in this block. i guess we don’t need to worry about mining incentive in the future after all. https://t.co/0aApwiobZG
— Adam Back (@adam3us) December 16, 2023
“6.25 BTC commission and 6.25 BTC reward for this block. I don’t think we need to worry about mining incentives in the future,” said industry veteran and Blockstream CEO Adam Back.
Some users noted that this level of network fees makes mass adoption of cryptocurrency problematic.
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Currently the “high priority” #btc txfee is $37
How many people earn less than $37 daily?
5.39 BILLION people.
TWO THIRDS of the worlds population are currently excluded from sending a “fast” #bitcoin tx unless they want to spend more than a days income.
Well done maxipads. pic.twitter.com/0JhNbH0kS7
— Kawaii Crypto (@kawaiicrypto) December 17, 2023
“How many people make less than $37 a day? 5.39 billion people! TWO-THIRDS of the world’s population are currently unable to send “fast” Bitcoin transactions unless they are willing to spend more than their daily income,” wrote a Kawaii Crypto trader.
However, according to popular commentator hodlonaut, the network of the first cryptocurrency is not intended for this, and high commissions are its protection from attack. The expert believes that second-layer solutions like Liquid Network or Lightning Network, which are specially designed for mass use, should be used for accessible transactions.
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Kinda blows my mind that so many people seemingly have never reflected on the obvious fact that fees will be high with high demand for block space.
Fees are currently artificially and temporarily high due to JPEG clownery, but it is nothing more than a glimpse into the future.…
— hodlonaut 80 IQ 13%er 🌮⚡🔑 🐝 (@hodlonaut) December 16, 2023
“It amazes me how many people have seemingly never thought about the obvious fact that fees will be high when demand for block space is strong. Currently, fees are artificially and temporarily inflated due to JPEG clowning, but this is nothing more than a glimpse into the future. Scaling does not happen on L1,” said hodlonaut.
He is confident that the structure of the Bitcoin network allows for a constant increase in value in accordance with the design of the Proof-of-Work consensus algorithm. It is impossible to maintain low commissions in this situation, as failed forks like Bitcoin Cash showed, the expert believes.
A similar opinion was expressed by a user under the nickname Beautyon.
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On chain fees are $41.72. That means anyone with less than that amount cannot send on chain from their wallet.
Assuming that people want to actually use Bitcoin, anyone who has, say, $30 on chain in their wallet is now “locked out” of their Bitcoin.
It would be an interesting… pic.twitter.com/Z22HP3YFyi
— Beautyon (@Beautyon_) December 16, 2023
“If Ordinals brings us the world of high prices sooner than expected, it will act as a scythe cutting off everyone who has not adopted an L2 solution to the network fees problem. Many will be confused, upset and ready to give up on Bitcoin. Obviously, there will be no return help for them, because there is no one to blame, no one to demand compensation from – after all, this is the normal state of the network,” he wrote.
Adam Back also stated the need to use L2 protocols instead of trying to solve the problem of high fees in the main blockchain.
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you can’t stop JPEGs on bitcoin. complaining will only make them do it more. trying to stop them and they’ll do it in worse ways. the high fees drive adoption of layer2 and force innovation. so relax and build things.
— Adam Back (@adam3us) December 16, 2023
“You can’t stop JPEG in Bitcoin. Complaining will only make you make more of them, which will make things worse. High fees encourage L2 adoption and innovation. So relax and work,” he wrote.
Founder of the Ord.io marketplace under the nickname Leonidas notedthat on December 17, transactions with “inscriptions” amounted to 57% of the total volume in the blockchain of the first cryptocurrency.
The Ordinals boom has spread to L2 solutions
At the same time, commissions have also increased in other blockchains on which analogues of Ordinals are issued.
On December 16, gas consumption for operations with “inscriptions” in EVM networks jumped to a record level of $8.37 million. Of the total amount, Avalanche accounted for $5.6 million, while Aribitrum One’s figure was $2.1 million.
Data: Dune Analytics.
Over the past 24 hours, Avalanche users have spent more than 77% of their gas on signature transactions. Within a week, the volume of such transactions reached 87% of the total. BNB Chain has the corresponding values - 39.7% and 72.9%.
On December 15, Arbitrum One experienced a more than hour-long outage due to a significant increase in network traffic.
Let us remind you that Bitcoin Core developer Luke Dash Jr. said that Ordinals contributes to the spread of spam in the blockchain, and predicted a quick end to the “inscriptions”.
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2023-12-18 08:51:55
#Ordinals #boom #pushed #Bitcoin #commissions #record #levels #ForkLog
