With the Xinjiang, China blackout, the mining power of the Bitcoin network has dropped by about 20% and unconfirmed transactions have accumulated. As a result, the average transaction fee rose to peaks of US $ 28.39, according to data from BitInfoCharts, equivalent to R $ 155.92 or around 14.17% of the minimum wage in Brazil. computational power directed to mining is perceived by the Bitcoin network with an algorithm that adjusts the difficulty of finding the next block, so that they are mined approximately every 10 minutes. However, the difficulty adjustments happen every 2016 blocks, the which can take more than two weeks. In the past few days, the network noticed the longest interval between two blocks in almost 10 years, when block 679,786 took two hours to find. For several moments of congestion, the lowest possible rate you could pay to confirm your transaction on a next block was more than 266 sat / vB (satoshis per virtual bytes), as the Mempool Space reported in an April 19 tweet.
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$ 21.23 was the lowest possible rate for a small transaction, but as even more hurried users pay even more (you can see transactions paying 3597 sat / vB), the average rate increases. is improving significantly as miners resume their activities. The next difficulty adjustment on the Bitcoin network is expected to take place around the 2nd and 3rd of May, according to the CryptoThis website.
Transaction fees reach 14% of the minimum wage in Brazil, is Bitcoin unfeasible for most of the population?
Performing only 7 transactions, a Brazilian would spend a minimum wage to pay for the service of the miners. And if Bitcoin were adopted en masse, the demand for space in the blocks would raise rates even further.And considering the growing price of BTC, it is normal for us to notice an increasing network fee in real or dollar. It's for these and other reasons that onchain transactions aren't enough. For developers of the Mempool Space block explorer, it's time to start migrating to second-tier solutions like Lightning Network and Liquid, if you see onchain fees as prohibitively high.
“The Bitcoin network transaction fee market was designed to go up forever, just like the price of Bitcoin itself,” tweeted the @Mempool profile.
The developers of the Electrum wallet echoed this need, writing that “with the current situation of the bitcoin memory pool, now is a good time to learn what transaction fees are for (hint: they are not for wallet developers) and how to avoid them using the Lightning network. ”Second-tier solutions are based on smart contracts and serve as ways to transact bitcoin without having to take up space in the block. In the case of Lightning, they are integrated payment channels that can transact as much as they want instantly and almost without fees, requiring only one channel opening transaction and another to close it.See too: Electrum wallet now supports Lightning Network