How Bitcoin Transaction Batching is Affecting Bitcoin Transactions
Mar 11, 2018 Posted / 6792 Views
The Bitcoin Network is clogged with very many individuals transactions all in a queue waiting for confirmation by miners. This makes bitcoin transaction confirmation time increase making it difficult to get confirmations for transactions.
Bitcoin fees are raised due to the very many transactions demanding for the few available slots for confirmation. This is a simple explanation of what happened when bitcoin transaction fees reach the tops of $40 recently.
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Bitcoin transaction batching is simply creating a bundle combining numerous transactions in one batch and submitted for confirmation as on transaction. The architecture of the Bitcoin Network is designed to allow transaction batching to propagate.
When few transactions are on the bitcoin network for a unit time the pressure on the network is low. Transaction confirms rapidly and transaction fees is reduced. This is the current situation in the bitcoin transaction network.
Previously bitcoin was i the blink of losing its core utility mostly because of the inability to carry out instant transfer of funds across different nodes in the bitcoin network. Coupled with the temporary bubble bitcoin went through, the cryptocurrency community were searching for bitcoin alternatives. Ethereum whose network never experienced hiked transaction fees became the most obvious option.
Bitcoin developers and crypto enthusiast went back to the drawing board divishing ways of making bitcoin great again. Many of such attempts resulted into forks which created alt-coins like bitcoin cash, bitcoin gold and others.
The sudden stability in the networking causing a reduction in transaction fees by more than 80 percent and transaction processing time significantly reduced too. Bitcoin got redeemed again, it can finally still be used for making micro transaction involving amounts as small as $1 from one address to another.
The biggest worry amount bitcoin users however is if the current improvement will hold for a long time. There are very many variables when it comes to bitcoin transactions majority are worried that one of two of those variables might change rendering transaction batching irrelevant making bitcoin transaction very expensive once again.
when more transaction are bundled up and presented in the blockchain as one much less disk space is occupied compared to when each of the transactions in the bundle appears on the blockchain individually. This how transaction batching makes bitcoin transaction more cheap and more efficient. With this simple theory i don't see any constraints that could hinder transaction batching and affect bitcoin propagation fees again.
However one of the shortcomings of transaction batching is the issue privacy. Since batching is majorly being deployed by bitcoin exchange platforms and wallet providers, batching transaction would make every body paid in that batch to be obtain access to the public key of all the transactions in the bundle. But security of the individual wallets remain incompromised.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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