TEMPORARILY INCREASE COMMISSIONS FOR TRANSACTIONS IN BITCOIN AFTER HACKING TO BITHUMB – Technology Business

TEMPORARILY INCREASE COMMISSIONS FOR TRANSACTIONS IN BITCOIN AFTER HACKING TO BITHUMB

Hours after the 30 million-dollar hack to the Korean bithumb Exchange House, the Bitcoin network suffered a congestion in the Mempool, where transactions issued with low commissions “queue up” waiting to be confirmed. A situation possibly linked to the movement of all balances of Bithumb’s online portfolio to a cold portfolio, paying high commissions to prioritize their transactions and securing the remaining funds, but increasing the Commission average needed to The entire network of users. However, this is a momentous event: the decongestion of the network is already visible and the price of the commissions begins to descend.

Bitcoin users experienced this Wednesday 20 a delay in the confirmation of their transactions, probably due to the measure announced by Bithumb to transfer the remaining funds in their possession to a cold or offline portfolio, as a protection measure After the recent attack. The Exchange House must carry out a process of consolidating its funds into a single portfolio to secure them.

The process of transferring all customer funds-in this case bithumb-from one or more online portfolios to a cold portfolio by a change house is known as consolidation. This process requires making a transaction for each user of the Exchange house, number that can reach the hundreds of thousands in this case; Especially considering that Bithumb is one of the main exchanges in South Korea. In this way, the Bitcoin network reached today more than 23 MB of weight in the Mempool, when the last averages have been around 300 KB.

It is necessary to emphasize that consolidating funds does not necessarily generate congestion in the Bitcoin network. The congestion of this Wednesday is due to the increase in the commissions paid by Bithumb to accelerate the confirmation process, who are interested in finishing the consolidation process with urgency. Therefore, there is no provision for a stay in the high commissions that the network manages today.

However, the commissions paid by Bithumb throughout the day today affected the average commissions of the network. For this reason, despite the current congestion in the Mempool, Bitcoin users continue to pay high amounts in their transaction fees.

Likewise, this massive movement of bitcoins to Bithumb’s cold portfolio is likely to coincide with nervous sales by those bitcoiners who, in the aftermath of the price drop of BTC this morning after the hack, decided to sell their digital assets to Avoid future losses due to market fluctuations.

Network congestion motivated to the number of above-average commission transactions began between 6:00 AM and 4:00pm, according to Blockchain.info. And around 4:00 in the afternoon, commissions were estimated at $5.77 in fast transactions of 20 minutes or less, while processing a transaction in four hours would cost at least $0.63, the latter being the usual cost of a transaction during the last Weeks, confirming in less than an hour. At the time of the publication of the note the estimated for a fast transaction is maintained in $5.77, maintaining a high average, but a transaction to be confirmed in at least four hours is an estimated cost of $0.36.

The congestion of the Bitcoin network after the hack of Bithumb, which caused a fall of more than 200 dollars in the price of Bitcoin this Tuesday, constitutes the second time in the last weeks in which the market is affected by cybercrime, after that hackers sust Rajesen 30% of the funds of the Exchange house-also Korean-Coinrail. Exchange houses and financial authorities have expressed their intention to implement new security measures to protect users. However, it has been difficult to defend against hacker attacks. For this reason, users are always advised not to keep funds stored in exchange houses: use them to trade and immediately transfer their money to their own personal purses.

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