More Than 30% of BTC Traffic Stems from the Veriblock Project
Over the last few weeks, a blockchain project called Veriblock whose protocol piggybacks off the Bitcoin Core (BTC) network has sparked debate. More than a quarter of BTC’s transaction numbers stem from the Veriblock system and the project has been criticized for using the blockchain in this manner.
Most people are unaware that about a quarter of the BTC chain’s daily transactions are due to another project called Veriblock. The Veriblock chain utilizes a system called proof-of-proof (PoP) and the ‘proof’ stems from the security of the BTC chain. Essentially, Veriblock aims to provide alternative
blockchain security by immersing a snapshot of the altcoin’s ledger into the BTC chain. Veriblock uses OP return transactions and other methods to embed the blockchain’s state data in an “SP blockchain transaction.” Last month BTC developer and Casa CTO Jameson Lopp noticed that Veriblock was dominating the number of BTC-based OP return transactions.
“Source of the now-highest volume of OP_RETURN outputs has been identified as Veriblock “proof of proof” miners,” explained Lopp. “They are creating around 20% of all BTC transactions now.”
According to statistics published this week, Veriblock captures more than 30-45 percent of transactions on a good day. The project is still in testnet mode and has only recently caught the attention of
cryptocurrency enthusiasts. A few other BTC community members have called the project “garbage” and complained about Veriblock spamming the network. As usual, there are various subjective valuations on whether or not some transaction use cases are spam. Most people understand, though, that the network is permissionless by nature and it really doesn’t matter as long as users pay for the block space. Veriblock believes other blockchains will be enticed by the PoP system because it gives them the ability to leverage BTC’s security and reputation.
“As a result, the reinforced security provided by PoP will encourage further adoption of these alternative blockchains,” Veriblock’s website details. “The transition of transactions from Bitcoin to alternative blockchains will also facilitate Bitcoin scaling, while continuing to drive value back to Bitcoin miners.”