In what appears like rare privilege, data from Blockchain.com has revealed that an unknown wallet last night processed a great deal of Bitcoin worth $2 billion, at less than $1 transaction charge .
While information of the holders and the purpose of the transaction remains unknown, what is more, significant in this news is that it presents the utility of blockchain as a technology capable of handling collosal financial transactions. However, this doesn’t mark the first in history with less fees. A little over a year ago, a transaction worth $1million was charged a $4 fee.
If this were to be on a traditional fiat market, this would be affect factors, such as delay and higher transaction charges. An example is an international fiat transfer, which would process between four working days, and it still comes with exorbitant transaction charges of 1 percent to 3 percent.
This means, for such a huge amount transferred with less than $1 in using blockchain technology, it would cost between $20 million and $60 million.
Aside from the delays and high transaction fees with the traditional financial system, it is not decentralized. It threatens users’ financial privacy because one central body regulates their operations, unlike crypto.
Available data from BitInfoChart confirmed that the average transaction fee on the largest network, BTC, is $2.67, and this has been the case for the last two months. For Ethereum, the second-largest crypto-asset in market value, stands at $20.44, representing 770 percent higher.
Similarly, BTC’s bullish sentiment corresponds with an additional data point that its reserves on major cryptocurrency exchanges have recorded new multi-year lows just this week. Likewise, the transaction fees dropping to levels not witnessed since the inception of last year’s bull run.