Analysis and Research, Mining
Every day at mid-morning New York time, the pay commission that bitcoin users globally pay to send cryptocurrencies skyrockets for up to an hour, and then returns to normal. A respected researcher believes he found the reason: BitMEX.
If the cryptocurrency derivatives exchange were to use more efficient technologies in transaction issuance, users could save up to approximately 1.7 BTC (with a current value of more than USD 15,000) in commission every day, or approximately 7% of the total commissions paid daily, argues the engineer with the pseudonym bitcoin 0xb10c.
wrote 0xb10c in a recent report
Daily issuance has a significant impact on the Bitcoin network and user commissions
Almost every time a user submits a bitcoin transaction, one, usually a small commission is added along with it. Commissions fluctuate all the time, depending on how much congestion there is on the network. This is because there is limited space for transactions to go through. If there are too many transactions sent at the same time, miners will give priority to those with higher commissions. Those with smaller commissions will have to wait.
Because BitMEX issues thousands of transactions at the same time and at the same time every day, this leads to commissions increasing every day, says 0xb10c, stating to CoinDesk that:
Every day, around 9:08 a.m., multiple megabytes of optimized transactions, most being user withdrawals, are issued by BitMEX. The effect is immediately noticeable as a sharp rise in commission fees, which estimators recommend and users pay.
Their research indicates that this has been going on since last September. However, BitMEX has not commented on it. On the other hand, 0xb10c has been writing a series of posts on the insights it gained while building the Bitcoin Transaction Monitor, a data tool to explore online transactions in detail.
Commission pressure
Most bitcoin wallets have built-in commission estimators that estimate what commission a user should add to a transaction to ensure it is accepted at the given time. If the network is handling too many transactions at once and the commission is too small, the transaction may take a little longer to complete. Since BitMEX carries out many transactions at the same time, obstructing the blockchain, as a consequence estimators raise commissions and many users pay them.
BitMEX issues thousands of bitcoin transactions at the same time and at the same time every day, leading to an increase in commissions every day. 0xb10c, bitcoin pseudonym for the Investigator.
Obviously, users prefer lower commissions. However, the higher commissions reinforce the security of the network, especially when block rewards, the main income of miners at the moment, decreases every four years, added 0xb10c. The halving is expected to happen next week, and has only highlighted long-term concerns about network security.
Binance, the largest exchange house, saw high volume on March 11 and 12, more than $ 1$ billion and 945$ million respectively instead of the seven-day average in January and February of 637 million, according to Crypto Compare, but They had not yet moved to SegWit portfolios. Binance representative Jessica Jung stated that the exchange house had not updated SegWit, "but it is in progress."
In addition to SegWit, 0xb10c recommended BitMEX to use “output batching”, an old technique that consists of grouping many transactions into one to save transaction space. He also mentioned Schnorr / Taproot, a Bitcoin update that has been in development for years and that some developers estimate will finally be released in the coming year.
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