Cryptocurrency news

Veriphi: users could save 57,817 BTC thanks to Segway and batch transactions

Veriphi: users could save 57,817 BTC thanks to Segway and batch transactions

Veriphi researchers found that cryptocurrency companies and users could save more than half a billion dollars in BTC by applying affordable scaling methods.

In the report
Veriphi says that companies could save 21,131. 97 BTC in fees, equivalent to $195 million at the time of publication of the report, if the transaction grouping method was used when sending all transactions from January 2012 to June 2020.

Grouping or” bundling ” transactions is a way to send a transaction to multiple recipients simultaneously in order to reduce the Commission for each individual transaction. For example, in March, the American exchange Coinbase began
group transactions for BTC withdrawal to reduce the load on the Bitcoin blockchain and reduce the size of commissions.

Users could also save 36,685.72 BTC in fees (approximately $339 million) if SegWit was used in all transactions from August 2017 to June 2020. In total, the savings of cryptocurrency users and companies would amount to 57,817.69 BTC, equivalent to $534 million at the time of publication of the report.

We remind you that SegWit was activated
in the Bitcoin blockchain in 2017. However, each cryptocurrency service must individually add support for this type of transaction. BitPay is one of the last companies in the industry to support the technology
and Bitstamp.

The slow adoption of SegWit by cryptocurrency services is due to the fact that for many companies, adding technology to the infrastructure of their platforms is not a priority initiative. For example, exchanges or online wallets simply shift Commission costs to their customers.

Veriphi’s head of research and development, Gustavo Flores, notes that SegWit and batch transaction processing have been around for many years. And users of wallets and services could save a lot of money if these technologies were used all the time.

“I saw in the news a couple of months ago that Coinbase started grouping transactions to withdraw BTC. And I thought it was very late. “Bundling” has been available since 2011 or 2012. We wondered how big the impact of all these companies and users who didn’t accept “bundling” and SegWit is. It turned out to be significant, ” Flores said.

In the report, Veriphi recommends that any person or organization responsible for sending a large number of transactions think about ways to save on fees.

“The potential for savings is significant, and those who make large volumes of transactions should seriously consider using these tools to remain competitive and save money.”

According to Bitinfocharts, the average Commission per BTC transaction today is
$5.8 – over the past month, the average cost of sending BTC has increased by 525%.