Bitcoin: $1 billion in transaction fees
The bitcoin blockchain has passed a historic milestone - $ 1 billion in aggregate fees for transactions conducted in the largest cryptocurrency network of all time.
According to the BlockChair startup, in recent years, the amount of commissions for transactions in bitcoins has actually decreased. This is due to the emergence of scaling solutions for bitcoin, including "Segregated Witness" and Lightning Network.
And although the total amount of transaction fees in bitcoins converted into us dollars is approximately $ 1 billion, in fact, this amount is much more if we take into account the market value of bitcoin today.
According to Coin Metrics, since 2009, 204'808,3479 BTC has been distributed as transaction fees for miners. At today's price, that's the equivalent of $ 1.86 billion.
The total amount of fees for transactions in the bitcoin network will only grow in the coming years, especially due to the gradual decline of alternative mechanisms for rewarding miners, including the reward for adding new blocks to the network.
Stepping back, transaction fees play three key roles in the bitcoin blockchain - all serving to ensure the network's integrity and resistance to censorship.
First, setting fees for bitcoin transactions prevents denial of service attacks, also called spam attacks, from slowing down the network.
Second, fees serve to prioritize which transactions are confirmed and written to blocks faster than others.
Finally, and perhaps most importantly, transaction fees also guarantee transaction completion. Combined with the block search fee, which is now 12.5 BTC per block and halves every four years, transaction fees encourage bitcoin network miners to purposefully monitor the state of the blockchain.
Without this monetary incentive, attackers can easily bribe miners to unfairly withhold all or certain transactions from making transactions on the blockchain.