Bitcoin ‘under siege’ by BRC-20 coins with soaring fees, claims analyst

Blockchain.com has actually confirmed the data reporting that the average deals per block are likewise at an all-time high of 3,778. Typical transactions per block. Source: Blockchain.comAccording to Mempool Space, there are currently 400,000 unconfirmed transactions pending on the network so the stockpile is not clearing which is keeping transaction costs elevated.Related: Bitcoin is not under attack: BTC maxis allay fears of a DoS offensiveOn May 9, the overall market capitalization of BRC-20 tokens went beyond $1 billion, as reported by Cointelegraph.The issue has actually got so bad that Bitcoin core designers are mulling taking action against BRC-20 tokens and Ordinals which they think about as network spam.bitcoin-core devs wish to kill ordinals & & BRC-20sMiners likely want to double down on ordinals & & BRC-20s to increase charges and the worth of personal mempoolsOrdinals & & BRC-20 holders desire the right to pursue and exist growthCivil war https://t.co/QeoAHJpPN4— Ryan Berckmans ryanb.eth (@ryanberckmans) May 9, 2023

Increased fees and a backlog of deals are besieging the Bitcoin (BTC) network and its due to a popular new “token” basic according to a CryptoQuant analyst.On May 9, Axel Adler Jr, an analyst with the crypto data firm, discussed that BRC-20 memecoin minting on the BTC blockchain is triggering the surge in block space demand, including:” Unlike traditional token requirements, such as Ethereums ERC-20, BRC-20 does not make use of wise contracts and runs only with wallets supporting the Bitcoin blockchain. Bitcoin under siege from BRC-20 “junk” coins: record charges and thousands of unconfirmed transactions!

Information from Bitinfocharts likewise reported a spike in the typical transaction costs, tape-recording a dive to $31 on May 8 compared to around $19 the day prior.On May 8, the overall costs per block temporarily exceeded the block subsidy benefit of 6.25 BTC for the very first time given that 2017. On May 9, Bitinfochart data tape-recorded a new all-time high up on the seven-day moving average for the variety of Bitcoin deals, hitting a top of 534,000. Nevertheless, the figure might in fact be greater than that with Bitinfocharts taping two higher spikes over 600,000 everyday transactions this month using raw worths. On May 9, it taped 598,000 BTC blockchain transactions.Love em or hate em, ordinals are absolutely shaking things up. The number of deals on the #bitcoin blockchain reached a brand-new perpetuity high yesterday of 534,000. pic.twitter.com/NTWmPsdiLw— Mati Greenspan (@MatiGreenspan) May 9, 2023

Increased charges and a stockpile of deals are besieging the Bitcoin (BTC) network and its due to a popular new “token” standard according to a CryptoQuant analyst.On May 9, Axel Adler Jr, an analyst with the crypto data firm, discussed that BRC-20 memecoin minting on the BTC blockchain is causing the rise in block space need, including:” Unlike conventional token standards, such as Ethereums ERC-20, BRC-20 does not make use of smart contracts and runs only with wallets supporting the Bitcoin blockchain. Bitcoin under siege from BRC-20 “junk” coins: record fees and thousands of unofficial transactions! Data from Bitinfocharts similarly reported a spike in the typical transaction costs, tape-recording a dive to $31 on May 8 compared to around $19 the day prior.On May 8, the total charges per block momentarily went beyond the block aid benefit of 6.25 BTC for the very first time considering that 2017.

Moreover, the variety of ordinal engravings has actually practically doubled from 2.5 million to 4.78 million in just over a week.It is all great news for miners though as profitability, or hash price, has surged 66% because the beginning of the month. Magazine: $ 3.4 B of Bitcoin in a popcorn tin: The Silk Road hackers story

Other Questions People Ask

What impact do BRC-20 coins have on Bitcoin transaction fees?

BRC-20 coins are significantly increasing Bitcoin transaction fees, with costs rising to an average of $31 as of May 8, compared to around $19 the previous day. This surge in fees is attributed to the high demand for block space driven by BRC-20 memecoin minting. As a result, users are experiencing delays, with approximately 400,000 unconfirmed transactions pending on the network.

Why are Bitcoin core developers concerned about BRC-20 tokens?

Bitcoin core developers are worried about BRC-20 tokens because they view them as network spam that contributes to elevated transaction fees and a backlog of unconfirmed transactions. The developers are considering taking action against these tokens and Ordinals to protect the network's integrity. This concern arises from the belief that the proliferation of BRC-20 tokens could undermine Bitcoin's functionality and user experience.

How has the popularity of BRC-20 coins affected Bitcoin's transaction volume?

The popularity of BRC-20 coins has led to a record-breaking transaction volume on the Bitcoin blockchain, with daily transactions peaking at 598,000 on May 9. This unprecedented activity has resulted in the overall market capitalization of BRC-20 tokens exceeding $1 billion. Such spikes in transaction volume are straining the network and contributing to increased fees and delays.

What are the implications of soaring fees for Bitcoin miners?

Soaring transaction fees due to BRC-20 coins have positive implications for Bitcoin miners, as their profitability has surged by 66% since the beginning of May. With transaction fees temporarily exceeding the block subsidy benefit of 6.25 BTC, miners are incentivized to continue supporting the network. This increase in miner revenue highlights the economic dynamics at play amid rising fees and network congestion.

How does BRC-20 differ from traditional token standards like ERC-20?

BRC-20 differs from traditional token standards like Ethereum's ERC-20 in that it does not utilize smart contracts and operates solely with wallets that support the Bitcoin blockchain. This fundamental difference means that BRC-20 tokens can create significant demand for block space without the same level of programmability found in ERC-20 tokens. Consequently, this has led to increased congestion and higher transaction fees on the Bitcoin network.