PSA: Do not take any posts in this subreddit seriously
3 min read
I just came across this post. It has 500 upvotes. I go through the comments. It’s full of usual lackadaisical moon farming comments. No one correcting misinformation.
binance started to transfer their btc from their old btc addresses to a taprot activated or bc1 address
This is false. Binance is consolidating UTXOs into a native SegWit address. That’s bech32 (version 0), not bech32m (Taproot, version 1).
Yesterday, was the memory usage on ~100% every block was filled almost entirely
Mempool usage has nothing to do with blockchain. It’s a pool of currently broadcast transactions verified by nodes. The default size is 300mb. Nodes can set their own mempool size whatever they want.
let’s find out where the mined btc from the Foundry USA pool is going. Oh snap it’s a binance wallet.
Yeah, you’ll see everything in that wallet has been paid out! Logical explanation is they’re doing auto payouts through Binance. If you see the flow of funds below one of the spending transactions, it’s automatically being paid out to hundreds of individual miners
So basically, they took up the whole memepool space for days and mined the majority of these transactions themselves.
I think he means mempool but this is not possible. The UTXO consolidation transactions by Binance simply sit in the mempool of each node once verified by that node and any miner can pick it up. I’ve observed from my own node miners dropped some of these transactions from Binance when there has been full blockspace usage by transactions who paid higher fee than the flat 13.5 sat/vbyte fee rate set by Binance.
Binance has clearly been doing UTXO management. I just posted it couple of days ago here they’re fully switching to native SegWit. I hope this also means Binance will have Lightning withdrawals soon like Kraken (Kraken has free Lightning withdrawals). That would be great and switching to native SegWit would be first step in doing that. Initially I obviously thought timing was odd because it came right after the mass withdrawals began but Binance later confirmed that they’re also preparing to share detailed merkle tree proof of funds.
Exchanges have several unidentified wallets they move coins to for many reasons. Sometimes it’s as simple as consolidating UTXOs. Any responsible company using bitcoin as part of regular business operations will actively manage UTXOs for security, cost benefits and also reducing the overall UTXO set which is an incentive for a company like Binance with long term vested interest in Bitcoin.
Mempool is a set of individually verified transactions managed by each node independently. Ideally, mempool usage is supposed to be full! To get into the next block, you just need to set your fee at the current suggested fee rate at any time. The fee rate has still remained between 18-40 sat/vb for the most part (40 to 80 cents). Mempool usage is NOT blockading anything. If your fee was set low, you can simply do a CPFP to speed it up.
The sheer amount of ignorant people in this subreddit making uninformed assumptions is insane. Nobody should take any posts in this subreddit seriously.
Of course before anyone asks, don’t take this post seriously either. Don’t trust, verify. Run your node and learn how shit works. This post is not defending Binance or any centralized entity. You should always self custody. It’s just setting the record straight.
submitted by /u/KAX1107
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