Research: BitMEX Increases Bitcoin Network Load

BitMEX cryptocurrency derivatives exchange is involved in significant overstatement of the average size of fees in Bitcoin network. The research of the developer under nickname 0xb10c informs about this.

Research: BitMEX Increases Bitcoin Network Load
BitMEX Increases Bitcoin Network Load

According to the research, BitMEX increases Bitcoin network load daily at the same time. That leads to significant growth of total fees volume approximately at 1,7 BTC per day.

According to developer`s data, BitMEX starts to conduct a large volume of transactions at approximately 13:00 UTC. This action causes enlarged load to the network, as a result, miners begin to process transactions with a higher commission. In result the fee for using Bitcoin network is growing for all users even outside of BitMEX.

0xb10c notes that the exchange is able to remedy this situation in any moment. SegWit protocol can significantly decrease the size of fees, but BitMEX uses just a part of its opportunities. Last year the exchange added support for native SegWit addresses in bech32 format for Bitcoin withdrawal. Although, it still does not use transaction output grouping.

Besides, Schnorr/Taproot Bitcoin protocol update will make positive effect.

The developer stresses that other exchanges, including Binance that does not support SegWit at all, also make similar impact on fees. As 0xb10c says, trading platforms are able to minimize the commission, but do not do this intentionally.

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