Bitcoin Active Addresses Show More Gradual Growth on Discounting the Veriblock Effect

Bitcoin Transactions are surging yet again, all thanks to Veriblock. In early March, after Veriblock testnet ended, the transactions on bitcoin blockchain took a serious dip which given the fact that the estimated amount of block-space used by VeriBlock is between 20 to 45 percent, it makes sense. However, recently, VeriBlock blockchain went live on the Bitcoin mainnet that has the transactions picking up yet again.

Source: Coinmetrics

With this mainnet launch, VeriBlock extends the security protection of Bitcoin blockchain from 51-percent attacks to the non-Bitcoin blockchains by linking them to the Bitcoin blockchain.

VeriBlock uses OP_RETURN which is a type of Bitcoin transaction that is used for embedding data on the blockchain.

“A ‘regular’ Bitcoin transaction and one carrying a VeriBlock publication need not be mutually exclusive,” said VeriBlock CTO Max Sanchez. “It would be a relatively simple engineering matter to add an option in a Bitcoin wallet that said ‘Sending BTC? Secure the crypto-ecosystem with VeriBlock and subsidize your BTC transaction fee.’”

However, unlike transactions, the active addresses show more gradual growth if we discount the VeriBlock’s OP_RETURN transactions effect.

The block-space used by VeriBlock do raises some concerns as for how it can affect the network. But according to Sanchez, the effects of his proof of proof on the Bitcoin network are “very small” as he said,

“As demand for bitcoin transactions increases and users are willing to bid higher fees, the amount of space VeriBlock consumes in Bitcoin will shrink — the two economic forces result in an equilibrium.”

He had further said the ebb and flow of transactions volume doesn’t affect Bitcoin adversely. Recently, James Lopp, CTO of Casa has also shared in an episode of HSHR8 podcast that he doesn’t see VeriBlock as an attack on the Bitcoin network but he did say,

“If you’re paying the fees to put it in the blockchain and you convince some miners to put it in, then there might be some economic rationality for this.”

While Bill Shihara, the co-founder and CEO of Bittrex said,

“At Bittrex, we've always operated with the highest possible security standards to protect our users and our long-term relationship with VeriBlock has been a part of that commitment.”

He further praised VeriBlock while stating,

“We need to continue to create innovative solutions like VeriBlock to move the blockchain industry forward and increase adoption.”

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