Binance moved 600 million dollars’ worth of BTC for just 7 dollars

Binance moved 600 million dollars’ worth of BTC for just 7 dollars
Nov 18, 2018 by Rico Wise

A couple of transactions addressed to the cold digital wallet of Binance cryptoexchange surfaced and displayed the might and the irony behind the blockchain technology all at once. Block 550211 contained a transaction of a little more than 1 million dollars, which cost Binance a little bit more than 8 dollars of fees, due to the fact that transaction size was merely 1550 bytes.

Another transaction was more noticeable, as 600 million dollars were sent this time, rendering it the biggest unspent transaction output to have ever existed. Additionally, it displays the irony behind BTC transactions, where the amount of fees depends not on the transaction amount but on the amount of computer resources needed for data storage. The 600 million dollar transaction took only 5981 bytes of computer space and therefore cost the colossus cryptoexchange only about 7 dollars.

In contrast with conventional transaction movement, there are a few things to note, which represent a drastic difference. First of all, any traditional transaction would take days, sometimes even weeks on end, especially when it comes to such large amounts being transferred at once. Secondly, a cold storage wallet, to which the transaction was performed, is an offline digital wallet, which is not connected to blockchain network or internet, thereby making it secure and completely safe. Finally, moving 600 million dollars using traditional transaction methods would cost a ridiculously large fee of more than 17 million dollars.

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