There has been a decrease in the transaction of Bitcoin recently. Various users speculated that the drop might be associated with the end of the Veriblock testnet on 4 March.
As the transaction data and volatile market volumes indicated, Bitcoin [ BTC ], the largest cryptocurrency in the world, did not have a good start this month. The latest Coin Metrics report shows a significant decrease in the Bitcoin transactions rate as numbers decreased from the current 239,345 of 353,537 transactions. The downward trend was the largest slope in the last three months because there were almost 114,000 transactions between the top and the bottom.
VeriBlock is a blockchain project focused on securing the world’s blockchains through Bitcoin-powered decentralized, transparent, trustless and unauthorized technologies. This blockchain project has recently concluded its testnet activities on March 4.
According to sources close to the issue, the daily transaction count of Bitcoin has fallen by a whopping 42 percent in the last ten days following a successful conclusion of the testnet operations of VeriBlock. Reports also showed that the testnet process accounted for nearly 20%-30% of the Bitcoin transactions that occurred. The testnet of Veriblock created a lot of ruckus in the space of cryptocurrency, with many users complaining about repeated spam and other problems.
The website of Veriblock then said: “As a result, PoP’s enhanced security will further encourage these alternative blockchains to be adopted. The transition from Bitcoin to alternative blockchains transactions will also facilitate the scaling of Bitcoin while continuing to drive value back to Bitcoin miners.”
The website of Veriblock also shows that the organization aims to provide prevention of double – spending attacks, protection from sustained 51 percent attacks, and early detection of fraud and theft attacks.
VeriBlock is based on the consensus algorithm Proof – of – Proof (PoP) for the uninitiated. The team says PoP makes it possible to inherit and leverage the proof of work (PoW) consensus from a superior network like the Bitcoin blockchain for other blockchains. VeriBlock, in particular, leverages the Bitcoin network’s OP_RETURN functionality to secure alternative blockchain networks. It is interesting to note that the Bitcoin blockchain allows anyone to store up to 80 bytes of arbitrary data via the OP_RETURN code, and VeriBlock utilizes this excellent security and scalability feature.
Cryptocurrency users also pointed out some other reasons for the decline, like the power and communications outage of Venezuela. The BTC transaction in Venezuela sank from 370,000 to 240,000, according to reports from inside the country. The reason for the drop was that the BTC transactions in Venezuela were more than those in Europe and the United Kingdom.
Currently, Bitcoin (BTC) sits at $ 3,907, with a market cap of $ 68.71 billion and a $10 billion 24-hour trading volume, as seen on CoinMarketCap. If everything goes as planned, on March 15, 2019, the Veriblock Mainnet is scheduled to go live, and it remains to be seen whether the event will ultimately push bitcoin’s price to the moon.