delvingbitcoin
[BUG]: spammers get Bitcoin blockspace at discounted price. Let's fix it
Posted on: January 7, 2024 18:13 UTC
The blog post delves into the challenges faced by Bitcoin users due to the competition for block space, particularly from BRC-20 protocols like certain spam cryptocurrencies.
These protocols already occupy a substantial amount of on-chain real estate and have the potential to further optimize their footprint. This enables them to be extremely competitive when it comes to bidding for block space, especially during periods of high demand driven by hype cycles. The resulting high transaction fees, while beneficial for miners, tend to cause significant discontent among regular Bitcoin users. Such fees are seemingly inevitable, given the bullish market demand that competes for the same limited block space, and this is expected to persist or even intensify with increased adoption levels. The discussed witness discount manipulation appears to be an ineffective solution in improving the situation for Bitcoin's core economic participants. Instead, it seems likely to leave them in an even less favorable position than they currently experience.