Bitcoin Transaction Fees Hit Three-Year Low as Lightning Network, SegWit Helps In Scaling

by | Jan 7, 2019 | Cryptocurrency, Cryptocurrency News

Bitcoin | Bitcoin fee | Lightning Network | SegWit

BitInfoCharts the median transaction fee for Bitcoin (BTC) network is just $0.029, reaching its 3-year low. Kevin Rooke a  cryptocurrency community researcher on Twitter, the transaction fees, hadn’t been this low since October 2015, when it was trading at about $270.

The researcher further pointed out in a reply to his tweet that this does not imply that the network is processing fewer transactions than what it was three years ago. Notably, current the BTC network is processing 75% more transactions and noting the aforementioned figures, it is doing it more efficiently.

According to available on BitInfoCharts, the BTC network has been processing between 200,000 and 250,000 transactions per day. However, technological developments like Segregated Witness (SegWit), introduced in August 2017, allow for more transactions to be processed, as their size is decreased by segregating a large chunk of data that was, before the upgrade, contained within each transaction.

The Lightning Network (LN), bitcoin’s layer-two scaling solution, has also been helping it scale, as 1ML data shows its total capacity is of over 557 BTC ($2.26 million), and that it now has over 5,150 nodes and over 18,500 open payment channels. While LN transactions aren’t processed directly on the blockchain, this second-layer protocol helps decrease the number of transactions being made on-chain.

Upon its launch, the layer-two scaling solution wasn’t user-friendly, and as such, its adoption has been growing at a slow, steady pace. As new, more user-friendly solutions are created, some believe its true potential will be achieved. Recently, developers have reportedly created a Lightning Network BTC wallet that’s said to be extremely easy to use.

 

Arshmeet Hora

The idea of expressing one’s views and reviews through words is beyond intriguing. What started as a creative let out has now become a passion and a profession for Arshmeet K Hora. In her own words ” with every word, every article that I write, my passion towards this medium has grown stronger.”  Arshmeet covers latest crypto news and updates as well as what happening new revolving around Blockchain Technology.

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