If there’s an aggregate effort for all companies to do trading or payment transactions using Bitcoin, we could have saved millions of dollars.
This is according to the new study released by a BTC startup called Veriphi.
In detail, the company mentioned that 21,131.97 BTC in fees (worth $195 million) would be spared, had all transactions from January 2012 to June 2020 using a technique labeled as transaction batching.
What is Transaction Batching?
A way to send multiple transactions at once, transaction batching, reduces payment for each transaction.
Companies like Coinbase and Kraken, for example, are sending several transactions at once, rather than singular users.
Other data also show that if all users’ transactions were accumulated, we would be taking home as savings (as a whole) around 36,685.72 BTC in fees (worth $339 million). This is all from August 2017 to June 2020.
What are the fees we get from each BTC transactions?
We know that each bitcoin transactions are inclusive of a fee. Users can have a preference for the amount of this fee. If the Bitcoin blockchain is particularly busy, seeing too many transactions at once, a higher cost will ensure a transaction gets picked up by miners and goes through faster.
These costs range an average of about $3 per transaction; The additional payments are an agony. Thus, bitcoin developers have spent a lot of energy creating extra Bitcoin block space to accept more new users, including transactions while working within the actual block-size constraint of 1 MB.
A technology that allows for more space for transactions per block, SegWit was first introduced to Bitcoin in 2017.
After almost three years, wallets and other bitcoin services went on to adopt SegWit at their movement and growth.
Crafting alternatives or optional transactions can also be a significant contributor to any effort, and requires engineering bandwidth; as such, some companies have not put into first consideration making the necessary infrastructure changes to their platforms.
Based on forecasts, if typical fees grow higher vs. the demand from users, users who want to save on costs may increase from slow-to-act platforms over to a bitcoin wallet or exchange that’s adopted SegWit.
Today, the BTC price has escalated to more than $11,000, perhaps showing the next bull run’s commencement.
In the report, Veriphi is telling any person or entity responsible for sending many transactions to consider some best practices for saving money on fees.
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