Bitcoin's Traffic Jam: Network Congestion Reaches 700,000 Unconfirmed Transactions
Almost no one is actively using Bitcoin, yet the network is nearing full capacity and experiencing record-high congestion. Is this a cause for alarm?
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Over the past two weeks, the number of unconfirmed Bitcoin (BTC) transactions has surged, reaching a high of 700,000 on September 6th, 2023. This situation is causing distress in the Bitcoin community as it highlights a persistent issue in the network.
The surge in unconfirmed transactions is primarily due to the growing volume of transactions on the Bitcoin network this year. While many aren’t aware of this yet, earlier this year, we saw the introduction of ‘Ordinal inscriptions ‘, which are the main contributor to this surge in new transactions.
Over 31 million Ordinal inscription transactions have even exceeded the number of financial transactions completed recently, leading to a substantial backlog of unconfirmed BTC transactions, that has almost completely clogged the network.
Understanding the Mempool
To comprehend this situation, it's essential to understand the concept of the "mempool," which represents the collection of unconfirmed transactions waiting to be included in a block. A website I use to view this data is www.mempool.space
When you initiate a BTC transaction, it doesn't immediately just go into the blockchain; instead, it enters the mempool. Miners will then select transactions from this backlog for confirmation and inclusion in the next block.
Usually, miners tend to give preference to transactions with higher fees, prioritizing them for processing. However, the transactions involving ordinals, often being of small value and having relatively low fees, are placed at the back of the queue. This practice has led to a substantial backlog, impacting not only ordinal (NFT) traders but also regular Bitcoin users attempting to conduct transactions.
Rising Unconfirmed Transactions
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