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Author: Brayden Lindrea Source: cointelegraph Translation: Shan Oppa, Bitchain Vision
Each time Bitcoin is halved, miners receive less block rewards, but ViaBTC is optimistic that innovative Bitcoin applications will be enough to compensate for these needs, as Satoshi Nakamoto expected.
According to a cryptocurrency mining pool, Bitcoin transaction fees from applications such as Ordinals, Runes and BRC-20 will be the key to ensuring miners can continue to survive even after more halving events.
“The evolution of [the Bitcoin network] has brought about an increasing number of use cases and a growing user base, which [significantly] affects miners’ expense revenue from on-chain transactions,” ViaBTC told Cointelegraph in a recent interview.
Until the Ordinals agreement was launched in January 2023, miners only rely on peer-to-peer transaction fees that accompany block rewards – block rewards are halved every 210,000 blocks, so in the long run, it will generate “indisputable” for miners’ income” The impact.
Mining revenue may also increase with the rise in Bitcoin (BTC) prices, but further development of the application layer will increase network activity and broaden its utility, thereby richly compensating miners.
ViaBTC experienced this firsthand on April 20, when it dug up the highly sought-after halving block (Block 840,000) that came with a record 37.6 BTC transaction fee – worth $2.4 million at the time.
The reward totals 40.7 BTC, which includes a new 3.125 BTC block subsidy from emoji coins and non-fungible token enthusiasts scramble to engrave “Rare Sora” and homogeneous through the new Runes token standard launched by the halving block.Qualified tokens.
They “foresee” that transaction fees will eventually break through the barriers of 30, 40, 50 bitcoins, but did not expect that they would be the beneficiaries of such huge rewards, not to mention getting rewards on the halving block.
Although Bitcoin miners earned an astonishing $78.3 million on the day of the halving day, their fees earned over nine of the past 20 days, according to Crypto Fees, have surpassed Ethereum stakers and Uniswap liquidity providers.
ViaBTC notes that Bitcoin’s pseudo-anonymous creator Satoshi Nakamoto predicts that transaction fees will eventually become the main source of income for miners as block rewards are cut in half.
If these transactions find broader utility and make significant technological advances in the future, it may attract more attention and recognition.
However, since each protocol was launched, the popularity of Ordinals Inscriptions, Runes and BRC-20 tokens has experienced several ups and downs, which has brought some instability to miner revenue.
ViaBTC has experienced three halving events since its operation in 2016, with 840,000 blocks being the 37,534th block it has been mined in 2900 days.
The computing power of this mining pool comes from miners in 118 countries.
