Cryptocurrency mining pool ViaBTC says Bitcoin transaction fees from apps like Ordinals, Runes and BRC-20s will be key to ensuring miners stay afloat as more halving events occur. ViaBTC said in a recent interview with Cointelegraph:

“The evolution (of the Bitcoin network) has led to an expanding number of use cases and a growing user base, which has significantly impacted the fee income miners receive from on-chain transactions.”

ViaBTC said that before the launch of the Ordinals protocol in January 2023, miners relied on peer-to-peer transaction fees to receive block subsidies - which are halved every 210,000 blocks, so there is an "undisputed" impact on miners' long-term income. Impact. ViaBTC explains that mining revenue will also increase as the price of Bitcoin increases, but further development of the application layer will increase network activity and expand its usefulness, thus leading to generous compensation for miners.

Bitcoin reached block height 840,000 on April 20, officially completing the fourth block reward halving in history. The mining output of each block was reduced from 6.25 BTC to 3.125 BTC. At that time, the halving block was mined by ViaBTC, and the fee income was as high as 37.626 BTC (about 2.4 million US dollars), and the block reward (fee plus block subsidy) totaled 40.751 BTC.

The average transaction fee on the Bitcoin network also hit an all-time high of $128 on the day of the halving, as many traders competed to inscribe and etch rare satoshis on the halving block. , much of which stems from frenzied activity on the Rune protocol, which went live at the same time as the Bitcoin halving.

ViaBTC stated that they had a “hunch” that Bitcoin transaction fees would eventually break through the 30, 40, and 50 BTC mark, but they did not expect that they would be the beneficiary of such a huge reward, let alone on the halving block . Data from Crypto Fees shows that on April 20 alone, Bitcoin’s total handling fees reached $78.3 million, more than 24 times that of Ethereum.

will be consistent with the situation envisioned by Satoshi Nakamoto

, although each Bitcoin halving will result in miners receiving less block subsidies, ViaBTC is optimistic that innovative Bitcoin applications will be able to make up for these needs, just like Bitcoin’s anonymous creator Satoshi Nakamoto ) as imagined.

ViaBTC pointed out that Satoshi Nakamoto had predicted that transaction fees would eventually become the main source of income for miners as the block subsidy was halved. The pool added:

“If these transactions find broader utility and achieve significant technological developments in the future, they may gain even more attention and recognition.”

However, the popularity of Ordinals, Runes, and BRC-20s has waxed and waned since the launch of each protocol, creating a certain instability in miner income.

ViaBTC has experienced three halving events since it began operations in 2016, with last month’s halving block being the 37,534th block mined since its inception 2,900 days ago. The pool’s computing power comes from miners from 118 countries.

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This article ViaBTC: Innovative Bitcoin applications are the key to solving the mining subsidy problem first appeared on Zombit.