Network Congestion Causes Disruptions in Bitcoin Transactions
Binance, one of the world’s largest cryptocurrency exchanges, temporarily halted all Bitcoin cash withdrawals due to congestion on the Bitcoin network. The exchange stated that its team is working on a solution to the problem. Binance assured its customers that their funds are safe and sound. After around 1 hour, Binance announced that the problem is solved and now the users can perform transactions.
We've temporarily closed $BTC withdrawals as the #Bitcoin network is experiencing a congestion issue.
Our team is currently working on a fix until the network is stabilized and will reopen $BTC withdrawals as soon as possible.
Rest assured, funds are SAFU.
— Binance (@binance) May 7, 2023
Meanwhile, OKX has tweeted that their BTC-related operations are running fine and claimed that the estimated arrival time is still up to 5 minutes.
🚨 #BTC deposit and withdrawal services on #OKX are running fine. On chain transaction fee is currently high but our transactions are going through fine.
💡Protip: If you want to save a few bucks, please use the lightning ⚡network. pic.twitter.com/VR2SUB6xXg
— OKX (@okx) May 7, 2023
Widespread Use of Inscription and BRC-20 Leads to Congestion on the Network
The congestion on the Bitcoin network has been caused by the widespread use of inscription and BRC-20, which have led to more than 400,000 transactions waiting for confirmation, a new all-time high. The popularity of both technologies has contributed to congestion, which has caused delays and increased fees for users.
Today’s Bitcoin Ordinals saw a record high of 68 BTC paid out, which indicates that the demand for Bitcoin is still strong. However, the congestion on the network has raised concerns about its scalability and ability to handle increased usage.
Experts suggest that the congestion on the BTC network may become even worse if big exchanges begin listing BRC-20 Token one after the other. The listing of new tokens on exchanges can increase demand for transactions and cause further congestion on the network.
Scalability Solutions Needed for Bitcoin Network
This news highlights the need for scalability solutions for the Bitcoin network, which will allow for faster and cheaper transactions. While Bitcoin remains the largest and most popular cryptocurrency, its scalability issues may hinder its adoption in the long run if not addressed.
Binance temporarily halted all BTC cash withdrawals due to network congestion on the Bitcoin network. This has been caused by the widespread use of inscription and BRC-20, which have led to more than 400,000 transactions waiting for confirmation. The news highlights the need for scalability solutions for the Bitcoin network to address its scalability issues. While Binance’s temporary halt on BTC withdrawals caused inconvenience for some users, the exchange’s swift action to address the issue helped protect user assets.
