Bitcoin scalability, block size, transaction delays are the hottest topics currently being discussed by the community at this time. In one of our previous posts, we mentioned about scalability issues plaguing the platform. To reiterate, the number of transactions on the platform have increased to levels beyond the processing capacity of the Bitcoin network. Increased load on Bitcoin network has created backlogs, causing transaction delays.
The transaction backlogs may lead to an indefinite delay in confirming bitcoin transactions as miners have very limited space on the blocks and they can’t add all transactions into it. So, miners tend to give more priority to transactions with higher miner fees as they tend to gain more out of it. At the same time, higher mining fee does not always guarantee faster confirmation.
Bitcoin wallet providers and exchanges are plagued by customer issues related to delayed transaction confirmations. in order to address these issues, they are increasing the miner fee for transactions happening in and out of their platforms. Recently, the CEO and Founder of Bitpay – Stephen Pair mentioned that their CoPay wallet uses a dynamic algorithm to set the optimal miner fee for transactions in order to ensure faster confirmations.
Increasing Miner Fee Reflected in Transaction Fee Hike
Bitpay is not the only Bitcoin platform taking the approach of increasing miner fee to ensure smooth transactions. Indian Bitcoin platforms have started following it as well. Unocoin, one of the leading bitcoin platform recently sent a mail to all its customers announcing changes in miner fees. Unocoin has doubled the miner fee on all transactions to 0.0002 BTC from the earlier 0.0001 BTC. While the platform collects a fixed miner fee of 0.0002 BTC, they will calculate and set the optimal miner fee for each transaction (even if it means they have to pitch in at times).
By ensuring the transactions are readily executed, Unocoin is attempting to earn its customer’s goodwill by making their life a lot easier.