Coinbase accused of excessive transaction volumes and network congestion Bitcoin

For the past week Coinbase, the biggest cryptocurrency platform, which is estimated at 1.6 billion dollars, were strongly criticized for the lack of support for Segregated Witness (SegWit) and batch transaction processing on the platform.

Jameson Lopp (Jameson Lopp), lead engineer and architect BitGo, said:

«The line of least resistance for Coinbase to provide our customers with high, medium and low priority of the sending transaction and the corresponding fee. Batch transactions are sent every X minutes. It’s not a news that one of the main causes of congestion of the network Bitcoin popular services like Blockchain, Coinbase and Gemini, which is inefficient use of the blockchain. If you do not want to worsen the situation, do not use them».

Lopp added that several major cryptocurrency exchanges currently use batch processing IIRC, and SegWit to reduce the size of the commissions and the network load. «Bitstamp, HitBTC, Kraken, LocalBitcoins and QuadrigaCX is used as SegWit, and IIRC,» said Lopp.

According to information provided by the Blockchain, the second most popular cryptocurrency wallet size mempool nodes of Bitcoin stays above 121 MB, with the average block size is 1.05 MB. However, the daily transaction volume of bitcoin has dropped from more than 450 000 transactions in December to 225 800 transactions. The blockchain remains as congested as a few weeks ago, when the network handled almost two times more transactions than today. However, the «weight» of a single transaction in the blockchain, depending on the number of conditions may differ in dozens of times, so the estimate only on the number of transactions does not convey the real picture.

On the nodes (including of mining pools) Bitcoin mempool works as a waiting area for unconfirmed transactions. The miners take your transaction from mempool to verify and confirm the payment, pack them in the unit and sent to the blockchain of Bitcoin. If the memory pool is full of Bitcoin — this means that miners do not have time to process the transaction, which reduces the usability of the network, efficiency and accessibility of bitcoin as the digital currency and medium of exchange.

Lopp and other well-known experts in the cryptocurrency sector criticize large companies such as Coinbase and Blockchain, because they are not part of the system dynamic calculation of commissions, SegWit and batch transaction processing to reduce fees to their customers and the entire network of Bitcoin. Large scale platform such as Coinbase, process more transactions than 70% of the companies in the industry. Thus, the impact on the environment Coinbase bitcoin really is huge.

However Loppu as one of the contributors to Bitcoin Core ,should recognize that the widespread introduction of SergWit is still not implemented for the reason that the current version of Bitcoin Core still does not support this technology fully, and to make full use companies must conduct their own revision of the software. Thus, the prosecution of companies by the developers of the Core looks to be shifting the blame on others. Full support SegWit team Core promises to provide only in version 0.16, which should be released by may 1.

Response Coinbase

In response to criticism of Brian Armstrong (Brian Armstrong), the President of Coinbase, said that the company will add SegWit, batch processing transactions and other innovative solutions to improve the situation by a slowdown in transaction processing of bitcoin. He said:

«Coinbase is working on implementing batch transactions SegWit and other strategies to improve the situation. Thank you for your patience.»

Would the introduction of SegWit and batch transaction processing a serious impact on the scalability of Bitcoin and reduce congestion of the network, only time will tell. But the General position of the community of bitcoin at the moment is that SegWit and batch processing needs to be added first, and scalability and increasing the block size can be discussed after this, otherwise the debate will again come to a standstill.

Добавить комментарий