One day ago i.e. on October 30, 2019, the Blockchain technology used by people to trade with Bitcoin surpassed the previous transaction fee. It recently crossed the $1 billion milestone. Bryan Aulds, the founder of Bitcoin made a comment regarding this. He said “This milestone is a really cool milestone just because it shows how much people value block space”, and he also specified the reason for it. He said that it was made possible because people do not mind paying the fee for such transactions.
According to the Bitcoin support experts and the Blockchain technology analytics, Bitcoin has recovered from the past years’ decline in the transactional fees. “Segregated Witness” is considered as one of the reasons behind this happening. Also, when you convert the value of this amount in USD, it is much more. This is so because the market value of Bitcoin has risen in the past few days.
What is the benefit of transaction fees?
It is estimated that this amount will continue to grow in the years to come. This is considered as a method to reward the Bitcoin miners. The CTO of Bitcoin management startup Casa also made a statement that “Over the long run, the transaction fees will eventually have to replace the block [subsidy]”.
There are three major roles played by transaction fees in accordance with the Bitcoin Blockchain. This makes it possible to secure the integrity of the network through which a person is making transactions. It also reduces the occurrence of spam attacks or DoS attacks. This results in the increased speed of the network.
The transaction fee also arranges the order so that a payment request gets confirmed faster than others. It is a simple equation according to which if you pay more your request will be taken into consideration more quickly. Also, it ensures that your transaction gets completed instantly without being hung up.
What else can you expect?
Billfodl’s Auld made a statement regarding this in which he said: “We have another 10 to 13 years of decent subsidies left before it drops away to pretty negligible amounts”. This will result in a situation where Bitcoin miners will have to adjust their cost-effective measures.
In case you wish to know more about Blockchain technology and how your digital transactions take place, then you can seek help from the team of experts of Bitcoin support. Bittrex users can opt for Bittrex support to about their transaction criteria.