Bitcoin: Bitcoin is a decentralized global currency invented by Satoshi Nakamoto which allows people to send or receive money across the internet. It uses peer-to-peer technology to work with no central authority: money issuance and transaction management are carried out together by the network. The mathematical field of cryptography is the basis for Bitcoin’s security. Bitcoins (and fractions of bitcoin named satoshi) are the unit of currency of the Bitcoin system.
How does Bitcoin work: Bitcoin uses peer-to-peer networking, public-key cryptography, and proof-of-work to process and confirm payments. Bitcoins are sent from one address to another with each user having many addresses. Each payment transaction is broadcast to the network and integrated into the blockchain. After some time, each transaction is locked in time by the huge amount of processing power which continues to extend the blockchain(record of all transaction).
Bitcoin Transaction Delay: Bitcoin transaction delay is a recent issue which has gained lots of media attenion. Some are saying this is a sign of how Bitcoin payments are failing.
While it is surely true the delays are causing frustration, there is no reason to proclaim bitcoin dead because services appear to have returned to normal.
The transactions confirmation delays of several hours were at first blamed on network issues which raises new doubts about whether or not Bitcoin will ever be a suitable payment method for consumers.
Normal transactions take about 10 minutes on average to validate. Average transaction times have soared from ten minutes to almost 43 minutes on average. Some companies are re-evaluating whether to accept Bitcoin as a result. When a company accepts bitcoin, the transaction must be validated and recorded in the blockchain. Until the transaction is validated and recorded, the
To solve this technical issue, many in the Bitcoin community have advocated basic changes to the bitcoin algorithm. One proposed fix is increasing the amount of transactions processed by a particular block chain from 1MB to 2MB. The capacity increase may solve the problem.
Also, there are cases when transactions made afterward is having a higher miner’s fee, that is why the system automatically takes the transaction in it is question and pushes it more down to queue. Therefore low fees transactions are often left idling up on the chain, without going anywhere. Paying a higher transaction fee was only one way to get Bitcoin transaction on time. Paying a higher fee is not a suitable solution, but at least, there is an option.
Instead of backbiting with each other, it is of great importance that developers should come to an agreement so as to make the Bitcoin network scalable. Action needs to be undertaken as soon as possible to prevent all these issues before becoming a common occurrence.
Bitcoin Transaction Benefits:
- Bitcoins can be sent easily through the Internet.
- The supply of bitcoins is regulated by software and the agreement of users of the system.
- Bitcoin Transactions are irreversible and fast.