Why Bitcoin is congested (why Bitcoin has been enduring)

Editor’s note on why Bitcoin is congested: This article is from Caiyun Blockchain (ID: cybtc_com) and is authorized to be reprinted by Daily Planet Why is Bitcoin congested? In the past few years, due to the surge in online activities, the transaction costs of Bitcoin have continued to increase. However, as the price of Bitcoin has risen to a record high, people have begun to pay attention to this problem – because more and more investors want to use their Cryptocurrency to hedge against inflation or other unnecessary price fluctuations However, despite this, this is not a new phenomenon, especially considering the high transaction fees and high network bandwidth of Bitcoin, which many analysts believe is reasonable. In fact, the Bitcoin network undergoes some significant adjustments every once in a while to cope with these changes, including reduced miners’ income, exchange downtime, and the entry of new users According to Coinmarketcap data, as of May 1, 2018, the average block reward for Bitcoin decreased from 12.5BTC to 6.25 BTCs (approximately $40000). Therefore, when the cost of Bitcoin transfers is less than $10, there will be “congestion”. But as previously reported, the Bitcoin network currently packages over 2 billion transactions into a block every day, and this process takes several days to complete. Although most transactions occur within a block, such as sending a transaction of less than 1000 yuan, in some cases even less Of course, if the entire Bitcoin network is divided into different parts, “on chain” transactions are usually initiated by multiple participants rather than being handled by individual individuals, so it may be related to the complexity of blockchain and can easily cause controversy In addition, for ordinary users, viewing the network status can help them understand the number of nodes in the network, or simply observe whether there is a specific change in the current state, thereby better determining which nodes are working and obtaining approval. In fact, we can understand the network situation and its impact by querying it, and also know how to adapt to its environment. Why is the Bitcoin network congested? Mainly because Bitcoin, as a payment system and value storage method, has the characteristics of decentralization. It enables seamless access to Bitcoin and other digital asset markets for anyone In order to solve this problem, Bitcoin developers have proposed new solutions, the first of which is the use of “flashing” technology. Lightning Network is a peer-to-peer payment protocol. Lightning Network aims to achieve more throughput than Bitcoin and eliminate middlemen, so that everyone can benefit from problems with larger network capacity, such as lower transaction costs and higher latency The second design is to create a new platform that does not require trust, providing users with a secure choice. The purpose of doing so is to prevent fraudulent behavior. The Bitcoin network also allows for interoperability between smart contracts and DeFi applications.

Why Bitcoin Lasts Forever

Editor’s note: This article is from the vernacular blockchain (ID: hellobtc), authored by 0x29, and reprinted with authorization by Daily Planet Bitcoin’s price has risen by over 20% in a short period of time, from its peak in January 2017 to around $20000 today, with an increase of up to 60%. However, due to the lack of clear regulatory requirements and regulations in the cryptocurrency market, as well as concerns about investor protection, many people believe that Bitcoin is a scam, and some analysts even predict that its future value will exceed 100 times or $200 trillion. So why can Bitcoin never die out? Let’s explore the fundamental reasons why Bitcoin can still exist and continue to develop for a long time together! Firstly, we need to understand what Bitcoin is and what does it have in common with gold? It is designed based on the basic properties of currency and can be used as one of the means of payment. Its purpose is to make any asset have its own uniqueness and substitutability, while ensuring the ownership and maintaining Data anonymization, and this feature makes it an effective medium of exchange. On the other hand, as people increasingly use digital assets, these two different items are also given different roles – they are exchanged for each other. So, when you place a product on the blockchain and there are no trading partners, the process is not complicated. But it should be remembered that “if you want to hold something, you must have a certain quantity or purchase amount.” Secondly, for ordinary consumers, investing in Bitcoin may be a less risky “speculative” approach. Therefore, Bitcoin can not only achieve high investment returns in the financial market, but also provide a more convenient consumer experience for the public. Finally, although Bitcoin is not a perfect existence, its decentralized advantages have proven this, as every node in the Bitcoin network can access this data. The consensus algorithm of Bitcoin is completely open source, and all nodes have their own ledger. In addition, the Bitcoin network also provides secure and reliable data storage services to prevent hacker attacks and malicious software from occurring. Of course, this does not mean that it is just a computer, but rather a part of the entire system. The third main issue is how to reach a consensus on the security of Bitcoin, and there is currently no exact information to indicate it. The fourth and most important point is that Bitcoin itself does not have strong technological reserves to support its development and growth. In addition to the above three aspects, there are many other factors behind Bitcoin that need to be considered, including:

(1) the stability of Bitcoin’s network infrastructure protocol; (2) The development of Ethereum 2.0; (3) Integration of smart contract technology; (4) The immutability of blockchain, and so on. A key function of the Bitcoin Core code is to allow users to modify the identity information of the block producer. By using these mechanisms to improve transaction efficiency and thereby reduce costs. However, the most significant feature of Bitcoin is its ability to reduce transaction costs while maintaining processing speed and throughput.