The Bitcoin network is weighed down by increasing number of transactions over the blockchain. Thanks to the smaller block size of 1 MB, which has not been upgraded since the days of Bitcoin’s creation. The increased load on the network has led to delays in confirmation of transactions. Miners have started to give priority to transactions with higher miner fee, leading to an increase in the average miner fee per transaction.
The increasing transaction fees make micro-transactions over the Bitcoin network virtually impossible. At the same time, those who are prone to making a large number of bitcoin transactions will end up paying a lot in transaction fees. In order to overcome these issues, 21 Inc. has implemented micropayment channels, that are designed to handle a large number of transactions between two parties without having all the transactions confirmed over the blockchain as long as the channel is kept open between the two wallet addresses.
The average miner free for faster confirmation on the blockchain currently stands at about 40 satoshis per byte. Each bitcoin transaction is about 250-256 bytes, which will put the average bitcoin transaction fee at around 10,000 satoshis or more, equivalent to $0.04. The graph on 21 Inc.’s