According to analysis by Mark “Murch” Erhardt of Chaincode Labs, 88% of all Bitcoin transaction inputs pay higher fees than are necessary. Erhardt bases his conclusion on data showing just 12% of transaction inputs use the SegWit format, which is less fee intensive than transacting with legacy inputs.
Erhardt believes that a reliance on legacy transaction fees keeps Bitcoin blocks smaller than they could otherwise be, contributing to a seemingly growing backlog of unconfirmed transactions.
A clogged up Bitcoin mempool containing 107 blocks worth of transactions at one point yesterday serves as a reminder that it is possible to save money on fees by creating less costly transactions. The easiest way to do this, according to Erhardt, is by adopting SegWit for all future transactions.
Erhardt pointed out that switching from legacy to data efficient SegWit transactions is necessary to minimize bloating of the blockchain:
“The longer less efficient output formats are prevalent, the more future blockspace debt we accumulate.”
Erhardt believes that integration of SegWit into major wallet provision services is long overdue, contributing to unnecessary mempool andTitle: 88% of all BTC transfers are overpaying transaction fees
Sourced From: cointelegraph.com/news/88-of-all-btc-transfers-are-overpaying-transaction-fees
Published Date: Thu, 11 Feb 2021 02:07:18 +0000