Since the Blockchain allows the appearance of new cryptocurrencies and NFTs in its network, transactions began to collapse and commissions reached a maximum in two years.
Almost half a million unresolved operations and commissions in a maximum of two years, is the result of the overheating of the Blockchain, the network where Bitcoin is immersed. The collapse was due, among other reasons, to the appearance of new meme cryptocurrencies, and the Ordinalswhich are NFTs based on smart contracts.
It should be remembered that the Blockchain was the first of its kind and can support an average of 7 operations per second. Any transaction that fails to complete remains in a queue. Thus, the waiting list went from 50,000 to over 400,000 in the last hours, and in the last hours it was around half a million.
One of the causes is due to the appearance of Ordinals, which are non-fungible tokens (NFTs) linked to the Bitcoin blockchain. Last week they exceeded 3 million. The Ordinals were launched in January through a mechanism that allows satoshis, or Bitcoin ‘cents’ to be marked (specifically, each satoshi is equal to 0.000000001 bitcoins), to thus convert them into an NFT or a new cryptocurrency. An example of these new cryptocurrencies was Pepe or Ordi.
The bitcoin blockchain proved that it is unable to support that wave of new users that came with NFTs and meme cryptocurrencies. To skip the queue, customers have to pay for transactions. Commissions are coming in at $20 well up from $1.20 in previous weeks. The last time this level had been recorded was in May 2021, when bitcoin prices hit a record high of $60,000.
Source: Ambito
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