Are you a bitcoin user and are concerned about the sluggish transaction speed of this crypto? Despite the numerous advantages Bitcoins offer, the transaction delay is frustrating for every Bitcoin user. If you are wondering why this happens, this guide has covered it. This article highlights all the possible reasons why your transactions are so slow.
The future possibilities of Bitcoin are great. Also, these crypto have been considered one of the most valuable. However, one cannot deny the shortcomings accompanied by the extra edge. These decentralized digital assets continue to grow as more and more investors engross themselves in this BTC network. Visit now one of the most accessible and most reliable Bitcoin trading platforms, BitQS, if you are new to this and are willing to join the network.
Initially, bitcoin was recognized as one of the fastest digital transactions, but the transactions in the network have become slower lately. Generally, it takes around ten minutes for the payment to be complete. However, if you have recently made a payment but are worried about the delay in the high response time, there might be some unusual reasons holding the network speed that you must know.
Understanding Bitcoin Transaction Time
Before you learn what transaction time is, learning about Bitcoin confirmation time is essential. Both words are often found synonymous with each other. But this is not the case. Read further to find out how.
The confirmation time refers to the total time taken to confirm your purchase after it is made on the Bitcoin network. In this context, it is essential to know that it takes around five or six confirmations to process your purchase. Therefore, the transaction time can be described as the total time taken in all the confirmations for your purchase to be finalized. This is done to prevent any cancellation or reversal of Bitcoin purchases.
In this context, it is simultaneously important to address how Bitcoin transactions take place.
Procedure Of Bitcoin Transactions
Do you ever think about how a BTC transaction works? It might seem like a simple transfer process; however, it is quite a challenging and intricate procedure. A secure communication approach called cryptography is utilized to verify the transactions using network nodes. It is then registered on the Bitcoin network.
The critical elements in this process are the transaction input and output, namely the sender’s and receiver’s addresses. The amount is then delivered to blocks, hence, the name ‘blockchain technology.’
The complete process is associated solely with the Bitcoin network and wallet without the interference of any third party. That is why more investors are looking forward to trading in BTC. Various trusted trading platforms assist in making your trading journey more straightforward.
Factors On Which The Transaction Speed Depend
By this time, you must surely be clear about the basics. This guide will further highlight the key factors on which the BTC transaction speed depends and why it is so low.
● Transaction Fees Is Too Less
The transaction fees are a key concern in the total transaction period. The miners charge a fee for performing the mining operation. Trading in bitcoin allows you to select the lowest possible charge for this. Likewise, if you pay a higher charge for the same, you would likely get faster services than if you pay a lower fee.
So if you are thinking of getting an improved transaction period, you might need to consider cancelling your transaction and setting up the fees a little bit higher.
● Network Issues
Do you know what scalability is? In simple words, a network’s scalability can be described as the capacity of a network to manage a greater load. When the BTC network has huge traffic, the transactions get stuck in the Mempool.
This results in an increased transaction period until the miners mine them. Plus, if the fees you set are too low, the miners will prefer other transactions. Network issues are associated with scalability limitations.
Usually, the network can manage up to seven transactions per second. However, during peak days, the load increases to over hundreds of transactions per second. It hence becomes a challenging task for the BTC miners. This further results in an increased transaction charge.
● Spam Attacks
Bitcoin is one of the most demanding cryptocurrencies as of 2024. This has often subjected it to an increased number of spam attacks. These types of attacks are mostly done by competitors who want to slow down the network by making hundreds of small transactions. Dusting attacks are also common in the BTC network to capture sensitive information of the crypto owners.
● Only A Few Miners
There are situations when the transactional load increases and there are not enough miners to handle it, or in cases when the operation is not profitable for the miners, it may result in a slower processing time.
Solutions To Enhance The Speed
Here are some top solutions for enhancing the processing duration of your Bitcoin purchase.
● Lightning Network
A lightning network has been designed as an advanced mechanism in a blockchain network that assists in making faster payments. This enhancement in the scalability limitations of a Bitcoin network can help process transactions at a faster rate.
● Bitcoin Cash
Designed in 2017, Bitcoin cash is a spin-off of the original BTC cryptocurrency. It has an improved block limit of 8MB compared to Bitcoin’s 1MB block limit. This has allowed handling more transactions per second without pulling down of the network.
Bitcoin has acquired the cryptocurrency world in a span of a few years. Lately, the Bitcoin network has been facing issues such as slower transaction periods. This might be due to numerous factors. However, some key factors include a lower transaction fee, spam attacks, scalability issues and a congested network.
Despite this flaw, Bitcoin has been estimated to grow further in the next few years. There are reliable crypto trading platforms that can help you trade Bitcoins safely and securely.