according to analyzing By Mark “Murch” Erhardt of Chaincode Labs, 88% of all Bitcoin transaction entries pay a higher fee than necessary. Erhardt bases his conclusion on data showing that only 12% of transaction inputs use the SegWit format, which is less expensive than dealing with legacy entries.
Erhardt BelieveReliance on old transaction fees keeps Bitcoin blocks smaller than they would otherwise be, contributing to an accumulation of seemingly unconfirmed transactions.
A blocked Bitcoin mempool containing 107 blocks of transactions sometime yesterday served as a reminder that it is possible to save money on fees by creating less expensive transactions. The easiest way to do this, according to Erhardt, is to certify SegWit for all future transactions.
Erhardt pointing to It is imperative to switch from legacy SegWit transactions to efficient SegWit transactions to reduce blockchain bloating:
“The longer the less efficient production formats proliferate, the more future blockspace debt accumulates.”
Erhardt believes SegWit’s integration into major wallet provisioning services is long overdue, contributing to the mempool and unnecessary blockchain bulge. “It’s been nearly 3.5 years since SegWit was activated,” he said at the end Course About mempool case.
“At what point is it acceptable for wallets that cannot post to original SegWit addresses to be considered outdated?”
Mempool was not cleared in 57 days. It is estimated that BTC is facilitating more payments on the chain than ever before. BTC has 98.3% of the SHA256d hash. The average block size is 1,320.39 KB over the past 30 days. The fee accounted for 16.13% of last day’s mining bonus.#mempoolreport pic.twitter.com/ldJsnETeK8
– (murchandamus) February 10, 2021
Erhardt has been working for years as a cryptocurrency wallet developer before being hired at Chaincode Labs in 2020 and specializes in UTXO management of Bitcoin trading wallets, helping them save money on business transactions and maintenance costs in a number of ways.
SegWit transactions currently account for approximately 51% of all Bitcoin transactions; A stat that’s likely to grow in size as merchant wallet providers face a growing demand for support for SegWit titles.
The estimated minimum fee for embedding in the next block is currently 149 sats / bytes, which equates to a fee of $ 14.97 at $ 44,870 per bitcoin.
How using SegWit saves transaction fees
While SegWit transactions are not technically smaller in size than legacy transactions, their data components are weighted differently when it comes to including them in a block.
Data related to b witness The transaction element is considered unnecessary for a working blockchain and is therefore deducted upon the total transaction size. This makes SegWit transactions appear smaller and therefore requires fewer processing fees – they are faster to confirm than an old transaction with the same fees
How to get started using SegWit now
After finding an efficient and trustworthy wallet that supports SegWit transactions, the most important component of using SegWit is moving funds earmarked for spending from legacy addresses (beginning with “1” or “3”) to SegWit addresses (beginning with “bc1”).
Electrum is one of the most popular and tested Bitcoin wallets with support for SegWit, which also supports multi-signature transactions and private key import / export. A growing number of major exchanges are adopting SegWit support, including Bitstamp, BitMEX, and more recently Binance. This means it can also make transactions to exchanges cheaper by submitting them from a SegWit address.