Viewpoint: After halving, the Bitcoin network security model may need to be adjusted

One of the key features of cryptocurrencies such as Bitcoin based on blockchain is its immutability. Although Bitcoin's PoW network model is not the best scalable solution, it has consolidated its strong and secure form of registration transaction. In such an ecosystem, transaction fees, available computing power, profitability, etc. are associated with its greater security narrative and play a role in preventing such as 51% attacks on the network Indispensable role.

Kraken Business Development Director: After halving, the Bitcoin network security model may need to be adjusted

Source: Pixabay

In the latest episode of the “Chain Reaction” podcast, Dan Held, business development director of Kraken Digital, highlighted issues related to the Bitcoin security model and the role of transaction fees in the ecosystem. According to Held, in the next 30 days, Bitcoin will experience its third block reward halving, which may pose a security risk. He pointed out,

"In the long run, Bitcoin's security is the most important. Whether its security model can withstand attacks. One of the core parts is to focus on block rewards. It consists of block subsidies and transaction fees. We should review transactions Whether the fee will replace block subsidies in a meaningful way and whether it is enough to ensure the security of the network. "

He emphasized that, generally speaking, when it comes to Bitcoin and cryptocurrencies, users will always migrate to a more secure blockchain. He added:

"People will naturally tend to have the highest security blockchain. Trading through the block space will involve a lot of fees. When we pay special attention to the transaction flexibility of Bitcoin and the Bitcoin block space, people are What are they willing to pay when trading in space? "

Coin

Source: coinmetrics.io

Interestingly, according to the network data from coin metrics, bitcoin transaction fees have been rising over time. By comparing similar fees users pay for other valuable asset storage, Held also explained how much transaction fees people are willing to pay for Bitcoin. He concluded,

"Bitcoin is actually a better asset than other assets. I mean, for real estate, not only do you have to pay these transaction fees, but the assets you own are not replaceable, you need to pay maintenance costs, and the market liquidity is very Poor. So, in fact, you can claim that users are willing to pay higher amounts and transaction fees. "

A few days ago, Bitcoin Fork Bitcoin Cash (BCH) experienced its first halving. It is shocking that BCH's computing power and profitability have collectively declined after halving, leaving hidden dangers for network security damage. Since Bitcoin is about to halve the block reward and the miner's reward will decline, it may rely more on transaction fees when verifying transactions on the blockchain.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Cardano Price Surges 8%: Here’s Why ADA Could Reach New Highs in 2024

In the past 24 hours, the Cardano price has experienced a significant increase of over 8% and is currently at $0.6202...

Blockchain

Cardano (ADA) Breaks Out: Is a New All-Time High on the Horizon? πŸš€

Cardano (ADA) has made a notable price breakthrough, surging to $0.710 for the first time since May 2022 on Thursday....

Blockchain

Cardano (ADA) Adoption Surge: A Bullish Sign for Future Price Levels πŸ”₯πŸ’°

Exciting possibilities lie ahead for Cardano (ADA) as it shows promising signs of surpassing current price levels, ba...

Market

Cardano Price Prediction: ADA Set for Spectacular Gains Post-Bitcoin Halving – Future Millionaire Maker?

Cardano gains 4% in 24 hours, reaching $0.383747 amidst a 2.5% marketwide increase.

Blockchain

Why does the US SEC, which has clearly classified more than a dozen tokens as securities, continue to avoid addressing the status of ETH?

As an intermediary for daily transactions and investment tools, L1 tokens need clear regulation, which is not only be...

DeFi

🀩 The US Cryptocurrency Conundrum: Regulating in Chaos 😱

Charles Hoskinson, creator of Cardano, expressed to Cointelegraph that regulators in the US, like the SEC, have effec...