The Bitcoin network is currently experiencing a period of high congestion, with a significant backlog of 393,000 unconfirmed transactions. This congestion is primarily caused by an increase in inscriptions on the blockchain, which are user-added images, texts, or audio, and account for 50-60% of all confirmed transactions. As a result, the network is under increased pressure, leading to the current backlog of unconfirmed transactions. Although transaction fees have decreased compared to the previous surge in May, the mempool, which serves as the staging area for transactions to be confirmed by miners and added to the blockchain, remains overwhelmed.
Some Bitcoin analysts argue that high transaction fees may be necessary for the long-term security of the network. While the Lightning Network, a Layer-2 scaling solution, offers potential relief from congestion, its current fee levels may be prohibitive for smaller transactions. There have been improvements in blockchain efficiency since the last major congestion in 2017, but concerns are being raised about the future implications.
One specific concern is the possibility of centralization and reduced security of everyday payments on the Lightning Network if transaction fees remain high. The congestion and inscriptions could also increase the risk of payment frauds. The duration of this congestion and its potential impact on the network remain uncertain.
It is important to note that these findings and opinions are based on the technical aspects of the Bitcoin network and its challenges. The original article, written by Pedro Solimano, focuses on the factual information without any apparent political bias. While there are expert opinions mentioned, they do not appear to have an agenda and are balanced with the facts presented. Therefore, I would assess this article to be 80% likely factual news based on my current analysis.
Solimano, P. (n.d.). Bitcoin Blockchain Network Suffers Congestion. BitcoinExchangeGuide. Retrieved from [link]