News From The Crypto Currencies Scene

Bitcoin Miners Torn on How to Solve Blockchain Congestion Problem

Bitcoin Miners Torn on How to Solve Blockchain Congestion Problem

The problem has surfaced amidst a growing push to increase the value of the virtual currency against the US dollar.

Currently, the backlog of the blockchain has reached unprecedented heights and users are paying huge amounts to speed up the transaction verification process.

A solution named Bitcoin Unlimited is on the horizon but its effectiveness is controversial. In essence, this software upgrade to the blockchain will do away with the cap on the amount of data the system can process. However, it will also make the blockchain more volatile to large players that could take control of the system.

A second option to ease the congestion is SegWit which aims to make the blockchain more efficient by utilizing a different approach towards transaction verification. However, the mining community have not responded enthusiastically to the solution.

The adoption of Unlimited might lead to a hard fork and cause bitcoin to split into two currencies. At the same time, according to Wu Jihan, founder of the world’s largest mining organization Antpool, inaction would only lead to further deterioration of the system and people might ultimately stop using Bitcoin.

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