Why Nostr? What is Njump?
2024-04-20 17:33:51

boatymcboatface on Nostr: Runes? WTF? Bitcoin is accommodating NFTs? ...

Runes? WTF?

Bitcoin is accommodating NFTs?
This should be a simplified explanation of what is happening with transactions fee right now:


The Bitcoin halving, which occurs approximately every 4 years, took place at block 840,000. The block subsidy decreased from 6.25 BTC to 3.125 BTC as expected. However, an unusually high amount of transaction fees accompanied this halving due to the launch of a new protocol called Runes.

Runes is a colored coins protocol that allows asset issuance on the Bitcoin blockchain. The protocol's design incentivizes users to pay high fees to secure unique asset names and avoid sniping attempts by others. This has led to a situation where users continually increase fees to outbid each other, resulting in unprecedented fee levels in the blocks following the halving.

The high fees have congested the Bitcoin network, making it difficult for other transactions to be included in blocks. While the current rate of Runes issuance is unsustainable in the long term, it has temporarily boosted miner revenue significantly.
Author Public Key
npub1tf6pddzrnr5c6gz9ufg4gfu0thkgn7d7j7x3vx52940nkzat8mashvv4pu