Bitcoin’s Year of Enterprise Adoption on BSV continues to take shape as leading BSV mining pool Mempool declared they would join Bitcoin mining giants TAAL and CoinGeek Mining in lowering BSV transaction fees to support the development of blockchain applications. Their announcement may signal that a trend has started to emerge as companies within the mining space look for more sustainable profit models to cement their future longevity and accelerate blockchain adoption in advance of the halving.
Variable Mining Rate has been a welcome development for a sector clouded by uncertainty. Towards the end of 2019, nChain CTO and Bitcoin SV Node Project Technical Director Steve Shadders wrote about the strong desire with the BSV community to cut transaction fees significantly to spur adoptions of the BSV public data ledger. Steve explained how Bitcoin needed a fee economy that meets the economics needs of both application builders and miners.
Thanks to work by the Bitcoin SV Node team, enterprise adoption is firmly within reach as miners now can negotiate rates and commercial partnerships. These new transaction-based business models are now possible due to Bitcoin finally starting to unlock the massive scaling abilities envisioned by Satoshi Nakamoto.
In a statement, Mempool announced that it plans to:
• Reduce the transaction acceptance fees from 1 satoshi/byte to 0.5 satoshi/byte. • Reduce the relay fees from 1 satoshi/byte to 0.25 satoshi/byte, the minimum fee for relaying transactions, to prevent double-spending. • Raise the restrictive limit of subsequent unconfirmed transactions. Increasing the restrictive limit of subsequent unconfirmed transactions on BSV from 25 to 50.
Mempool signaled they would offer more transaction fee discounts and explore other collaborative projects as conditions warrant. The pool already has a business agreement in place with WeatherSV to serve as their official “partner of transaction package.” Reminiscent of the cloud hosting race, Mempool is establishing a revenue model other miners can quickly adopt to generate additional revenue.
Lin Zheming, the founder of Mempool, recognized the need for lower fees in order to rationalize the operational cost for businesses generating massive transaction volumes on Bitcoin SV.
“BSV ecosystem is on a steady development path toward a ledger that generates the highest quantity of daily transactions. However, various infrastructures are yet to be completed. We need to cut the cost down to below its utility level and facilitate a wider usage of ledger by bringing profit to each user,” Lin stated.
While Variable Mining Rate is another needed step forward along the pathway towards adoption, it is not the only innovation planned. The Genesis Hard Fork and the Teranode Project are on the horizon to ensure BSV can scale to massive use as global adoption rises. Before this latest release, daily transaction volume on BSV surged overtaking BTC and rivaling ETH. Application developers and enterprises both are welcoming this latest news as miners stand to profit from the increased development activity taking place on the BSV blockchain.
The Genesis protocol upgrade on February 4, 2020 is a monumental step in the history of Bitcoin, and will see BSV returned as close as possible to the original protocol as envisioned by Satoshi Nakamoto. Visit the Genesis Hard Fork page to learn more.