Friday, November 25, 2016

Trading pit fixes this recurring problem

Almost one million bitcoins, worth more than half a billion dollars, are currently stuck in no man’s land as the network struggles to meet rising demand from China.
At one point, 70,000 transactions were stuck, unleashing a mountain of complaints from worried bitcoin users who took to bitcoin’s main communication channels of r/btc and r/bitcoin to ask why their transaction does not confirm. Among the complainants was a parent who wondered why their son’s payment to Microsoft is not going through. Another asked why his transaction has not confirmed in 24 hours while others wanted to know how to “delete” unconfirmed transactions.
The surge in demand acted as, in effect, a DDoS of the network, denying service to users due to a 1MB transaction space limit which has been the subject of debate for many years with no solution achieved due to refusal from some bitcoin developers, mainly employed by Blockstream, to in any way provide a solution in time for surging demand.
Although Adam Back, Blockstream’s CEO, offered a 2-4-8MB increase, he quickly withdrew the offer in favor of segwit announced last year as a non-complex solution that will take only a few months. Despite arguments at the time that segwit had been in use on Liquid, Blockstream’s private chain, for a year, now, almost a year later, the segwit client has still not been launched.
 Cycle prices goes up because the pit boss is busy on the graph, when this happens, price compression will end up  pricing  the cost of congestion.

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