Average Transaction Rate Per BTC Block Reaches All-Time High, What’s Causing It?

Analysis show that the average transaction rate for each bitcoin block has reached its all-time high over the past few days and many experts believe that the reason behind this is the increase in operations by the company Veriblock. In our bitcoin news today, we try to connect the dots and see what the real cause behind it is.

The highest transaction ever that was recorded in a single day was in December 2017 after 420,000 transactions happened in a single day. After Veriblock went live a few days ago, the data shows that it represents about 20 percent of the total bitcoin transactions. If the demand increases, experts wonder could it reach up to 80% of all BTC transactions?

Veriblock is platform that makes possible for alternative blockchains to provide leverage of the bitcoin hashpower for improved blockchain security. It is much like Komodo with the difference that Komodo requires fewer transactions.  Veriblock explains their concept:

 “PoP mining enables blockchains to inherit and leverage the Proof of Work from a superior blockchain such as Bitcoin. As a result, the reinforced security provided by PoP will encourage further adoption of these alternative blockchains.”

Some believe that Veriblock looks like a blockchain spam but not the ones that will make you complain if you are into the btc mining business. Blocks are surrounded of fee-paying transactions and the current fee rate is about 10,000 satoshi per kilobyte.

If the price of bitcoin manages to increase while Veriblock still uses the larger amount of the block space, the fees will likely skyrocket. In order for the platform to remain a reliable service, they will have to pay the higher fees.

The expected Bull Run could lead to the businesses adopting the lightning network as a way to make and save money but regarding the users, this question cannot be answered precisely.  As long as second-layer applications are built on Bitcoin, the minimal real estate of 1MB blocks would become more valuable. The Lightning network transactions will go directly to the main chain through cannels which open and close constantly.

Veriblock’s proof-of-proof takes up a lot of space. If the lightning network operates in full mode and the blocks are still crowded, the block size question is about to open again.