A renowned crypto analyst and researcher Willy Woo hasascertainedwhatseveralotherswithin thecommunity haveunnoted in the case with Bitcoin [BTC] network congestion.Whereasthis year’s marketworseninghasshakedoffaround 70%of Bitcoin [BTC]price, the Bitcoin network is quietly gaining scale. It’sa symptomof whatseveralblockchain pioneersaretoutingthroughoutthe marketdraught,thatis for developersto staytheir heads downoperatingwhile notbeing distracted by the noise that’sencompassingcryptocurrencycosts.
Congestion on the Bitcoin network has reachedaround 95% since thelast week,howeverif you were transacting in Bitcoin [BTC], you wouldn’t haveexperienced an hikeintransactionfees,thatstayatapproximately around$0.1 USD — even for transactions asmassiveas $194 Mln. Woo tweeted a comparison of the 2017 congestion of up to85%versus 2018 peak congestion of95%, illustrating that despitethe uppercongestiontodaysfeesstay“nominal” and below year-ago levels.
Adding further, he explained:
“Meanwhile…throughoutthebear marketno less… Bitcoin’s blocks peakhigher than95%fullwithoutanyone noticing, the feesand confirmationtimesstaynominal. Bitcoin [BTC] of 2018isn’tBitcoin of 2017. The protocol is quietlyimproving.”
The dataseemsto besupportingthe 1MB ceiling,althoughWoo later updated the chart tomirror“witness blockswithin theimage.”
According to the Blockchain Council, a 1MB block isapproximately equal to 2,000 transactions,althoughthe commonrangeof transactions per block is reportedly below that. The adoption of SegWit,thatcontains around 4 Mln unit block weight ceiling, hasexpandedthecapabilityfor blocks.
The Bitcoin blockchain has thecapabilityto performaroundseventransactions per second (TPS),thatmay be a much farcry from the tens of thousands of TPS that the Visa network handles. But, as AndreessenHorowitzGeneral Partner Katie Haun recently explained in earlier days: “Wearewithin thedial-up days.Architecture hasn’t beendesignednonethelessto scale-up programmablemoney.”
In just less than2years, the Bitcoin block rewardis predictedto be halved from12.5. BTC to 6.25 BTC,that canplace abiggerstresson fees generated by the miningmethod.
Investorscantake a look atthenerveof the networkonce morein Q1 of 2019,thatiswhencrypto traders likeMichaelNovogratz of Galaxy Digital predict institutional capitalcancome offoff the sidelines.