The Bitcoin network is currently under siege from what some are calling “junk” coins, as record-high fees and tens of thousands of unconfirmed transactions have been flooding the network over the past few days. As a result, the average transaction fee within 24 hours on the Bitcoin network has exceeded $16, with a peak of $29, making it increasingly difficult for users to conduct transactions on the network.

The reason behind this situation is the increasing popularity of meme coins based on the BRC-20 standard. BRC-20 is an experimental token standard for the Bitcoin blockchain, developed using the Bitcoin Ordinals protocol. Unlike conventional token standards like Ethereum’s ERC-20, BRC-20 does not use smart contracts and operates only with wallets that support the Bitcoin blockchain.

While the BRC-20 standard was designed to facilitate the issuance of non-fungible tokens (NFTs) on the Bitcoin blockchain, the hype surrounding these “junk” coins has led to an influx of unconfirmed transactions that have been overwhelming the Bitcoin network. This has resulted in major exchanges such as Binance having to suspend BTC withdrawals twice due to the sheer volume of uncompleted transactions.

While the BRC-20 standard is an interesting experiment for technological development, using the Bitcoin network to spread these junk coins that spam the network is undesirable. As one commenter put it, “Bitcoin is a diamond, and people are trying to hammer nails with it.”

The BRC-20 Gitbook itself acknowledges that the standard is merely a “fun experimental standard demonstrating that you can create off-chain balance states with inscriptions.” However, the recent surge in popularity of these junk coins has led to a situation where the Bitcoin network is struggling to cope with the influx of unconfirmed transactions.

It remains to be seen what impact this situation will have on the broader cryptocurrency market, but it is clear that the current surge in popularity of these junk coins is putting a strain on the Bitcoin network. As the cryptocurrency ecosystem continues to evolve, it is crucial for developers and users to ensure that they are using the network responsibly and not causing unnecessary congestion or disruption.

Source: https://azcoinnews.com/bitcoin-network-overwhelmed-by-brc-20-junk-coins-record-fees-and-unconfirmed-transactions.html