Not too long ago, BTC developers noticed strange activity on the Bitcoin blockchain. They reported that an a significant number of unidentified OP_RETURN transactions were seen on the blockchain. Keep in mind that OP_RETURN transactions are those that are used to embed data into the Bitcoin blockchain. This type of transaction can be used for issuing new assets and proving the existence of a data among other things.
VeriBlock Now Accounts For 20% Of Bitcoin’s Daily Transaction Volume
During the weekend, the developers discovered that the transactions were being generated by a new Bitcoin startup known as VeriBlock. VeriBlock is a project that piggybacks on the blockchain as a more secure alternative for cryptocurrency asset networks. The CTO of Casa, Jameson Lopp, VeriBlock has developed so much that it now accounts for up to 20% of the daily Bitcoin transaction volume.
VeriBlock is strongly supported by the proof-of-proof consensus mechanism. This mechanism is supplemental to Bitcoin’s proof-of-work and used by those who integrate with VeriBlock. The goal is to provide more security for digital assets that aren’t as secure as BTC.
Generally, altcoins have security issues from time to time. This is mainly because they offer low mining rewards when compared to Bitcoin. A typical example of the lack of security is the mining attack that was recently reported on the Ethereum Classic network. This attack is ongoing, by the way. Altcoins are prone to these attacks because there aren’t enough miners sharing and generating the hashrate. For this reason, a group of bad actors can high jack the network and rewrite the history. With this power, they can do anything they want from sending coins to creating tokens without mining.
VeriBlock improves the security of these other blockchains by embedding their ledgers into the Bitcoin blockchain. This way, the network will not rely on its hashrate alone but would be able to benefit from the significant hashrate from the Bitcoin network. The VeriBlock team is being led by Jeff Garzik, a Core Bitcoin contributor who was the number one proponent of Bitcoin SegWit2x in 2017. While the VeriBlock blockchain is still in its testing phase, the transactions being generated from the network is growing fast.
How Piggybacking Affects The Bitcoin
Blockchain VeriBlock isn’t the first company to propose embedding alternative data into the BTC blockchain. Over the years, there have been many debates about this kind of transaction. While some believed that it would not be beneficial for the Bitcoin blockchain, others saw it as a good idea. Eventually, OP_RETURN operator was introduced in Bitcoin Core 0.9.
Bitcoin (BTC) Price Today – BTC / USD
The fact remains that the Bitcoin blockchain is permissionless and decentralized. So, any willing party can embed transactions for a fee. VeriBlock is willing to provide this service for you. While it is making fund transfers expensive, there is nothing anyone can do to stop it. As long as people are ready to pay the fees required to improve the security of alternative blockchains, VeriBlock will keep soaring. With time, everyone would know the effect VeriBlock has on the Bitcoin blockchain. With this kind of progress, there is no telling how big the company will be by the end of the year 2019.