Bitcoin Mining Company Riot Blockchain Inc. and online analytics company Block software solutions released a report detailing the future scalability of Bitcoin transaction fees, according to a release sent to Bitcoin Magazine.
The report notes that the average transaction size per individual currently represents 1-5 Bitcoin transactions per year, and explains this will likely grow to 1-5 transactions per day Bitcoin will become the exchange facility.
With an estimated seven billion people using bitcoin, this increase in transactions would require the network to increase throughput by 79,843.75 times its current capacity. As a result, the report explains that as transactions expand worldwide, more users will turn to second- and third-layer scaling solutions like Fedimint and Lightning Network.
However, scaling solutions will not be available immediately. As such, the report details that over the next 20 years there is likely to be a period of high on-chain fees, which will encourage the development of solutions to scale further.
Additionally, as on-chain fees increase and block subsidies decrease, miners will increasingly consider transaction fees for their source of revenue. In doing so, research shows that miners will generate more revenue from transaction fees than subsidies from 2032 – 2048.
Furthermore, the report details three attack vectors including economic and non-economic attacks and compares them to Bitcoin’s defragmentation with increased transaction fees adding to the cost of the attack.
“It’s impossible to know, but it’s safe to say that Bitcoin’s long-term ‘security’ is possible and miners will likely go through more scaling cycles where they earn a significant amount of transaction fees as Bitcoin adoption accelerates and its use as a means of reporting conclusions.