Today we will address the properties, benefits, speeds and characteristics of the king of crypto, Bitcoin, the largest & most dominant of cryptocurrency, and how BTC functions in Klever.
Since the launch of Klever app roughly two months ago, the Klever team consisting of more than 40 developers worldwide has worked round the clock to add new features, services, products, and most importantly, support for new blockchain protocols.
Starting out upon Klever’s official launch on August 28 with support for the three most active public chains in terms of daily users, namely Bitcoin, Ethereum and Tron, Klever has since added support for since new major blockchains: Litecoin, DigiByte, Ripple, Binance Chain, Dash and DogeCoin.
By maintaining and adding support for these nine prominent blockchains, Klever has significantly expanded the use case of Klever app by enabling our global user base to securely and seamlessly store, send, receive and charge the cryptocurrencies running on top of those chains.
In a series of newsletters, we will address the properties, benefits, speeds and characteristics of these blockchains, starting today with the undisputed champion of crypto, namely Bitcoin (BTC), the largest and most dominant of these cryptocurrencies, and how BTC functions in Klever?
Born out of the global financial crisis of 2008, Bitcoin was created in 2009 as the world’s first cryptocurrency based on blockchain technology by Satoshi Nakamoto, a pseudonym representing an individual or a group who are still anonymous to this day.
Bitcoin is without competition the major and most dominant cryptocurrency in the world, with BTC dominance lying on 65% of the entire crypto market today, enjoying a market cap above $300 billion. With Bitcoin’s recent price surge past $16,000, levels only witnessed during the bull run of 2017-18, the global interest in and demand for BTC and cryptocurrencies are reaching new heights.
Bitcoin’s deflationary financial policy is often touted as “written in stone”, meaning that it has not changed much since inception. There is a finite and scarce amount of total Bitcoin’s to ever be created at 21 million BTC, with the current circulating supply being 18,538,368 BTC.
New BTC is created and minted through a Proof-of-Work (POW) governance system. POW functions so that miners (advanced mining machines) confirm transactions on the Bitcoin network as a whole by solving advanced cryptographical equations. These miners are then rewarded in BTC for their work, while double spending is avoided.
The POW consensus mechanism and the fact that there are over 10,000 bitcoin nodes (computer points) also results in a highly limited transaction speed of the Bitcoin network, as BTC is able to process a mere 4-6 transactions per second (TPS). The tradeoff in transaction speed is however outweighed by the robustness, decentralized and highly secure nature of the Bitcoin blockchain.
With this in mind, although Bitcoin was originally created with the stated purpose to serve as a peer-to-peer electronic cash system, it is today often hailed as an excellent store of value and hedge against central bank’s unrelenting printing of fiat currencies.
Native SegWit BTC addresses in Klever
Klever’s support for p2p BTC transactions uses Native SegWit (Segregated Witness) technology, which essentially results in transfer of coins being faster and more secure for our users compared with more legacy accounts of Bitcoin. Simply put, Native SegWit is the process by which the block size limit on the blockchain is increased by removing signature data from Bitcoin transactions, and this is enabled by separating transaction signatures.
By using the most updated Native SegWit (Bech32) address format for Bitcoin accounts, some users may encounter issues with receiving BTC from an exchange or wallet that does not support Bech32 Address Format, but instead still uses the old legacy address formats. The easiest way around this is simply to use binance.com, send your BTC from the legacy address to your Binance account, and then send it to your Klever app.
Bitcoin fees in Klever
Klever is a decentralized p2p wallet, which means that users have total and full control of their private keys and that the Klever team cannot at any time or in any way access user’s funds or see their private keys.
All transaction fees paid in the wallet depend on the blockchain network the transaction is executed on. Besides the rewards for mined block on the BTC network, miners also receive the transaction fees spent on that block. That’s the reason transactions with higher fees are usually processed faster than transactions with lower fees.
Klever has three standard fee options for users to choose: Economy, Regular and Priority. Those options will compute the average network fees in the last 100, 10 and 1 blocks respectively. The computation result is given in sats (Satoshis) per bytes and then multiplied by the user’s transaction size to compute the actual transaction fee.
Then you may ask: If Klever has no participation in transaction fees, why are my transaction fees in some cases higher with Klever than with others?
The actual fee takes into consideration the size of the transaction and the transaction size varies with the amount of so-called Unspent Transaction Output (UTXO) consumed to generate the new BTC transaction. Every transaction a wallet receives generates one or more new UTXOs, which essentially means the amount of crypto a user has left remaining after executing a transaction.
For instance, two wallet accounts, with the same balance, could generate different fees to send the same amount to another wallet. If user “A” received 100 transactions of 0.001 BTC and user “B” received one transaction of 0.1 BTC, to send the 0.1 BTC to another wallet at the same time with the same priority (sats per byte), user “A” will pay much more fees than user “B”
Estimated TX Size = Number of Inputs * 148 + Number of Outputs * 34 + 10
Estimated Fee = Estimated TX Size * sats per bytes
In the example case, let’s consider that 2 outputs are created and UTXOs summing 0.1 BTC are consumed and 100 sats per byte for both. Fees will be estimated as follow:
Estimated TX Size = 100 * 148 + 2 * 34 +10 = 14878 bytes
Estimated Fee = 14878 * 100 = 1487800 sats = 0.014878 BTC
Estimated TX Size = 1 * 148 + 2 * 34 +10 = 226 bytes
Estimated Fee = 226 * 100 = 22600 sats = 0.000226 BTC
User “A” will have to pay 65x the fee amount for user “B” to send the same amount to the same wallet at the same time.
For a better fee experience, Klever app has a matching algorithm that tries to reduce the number of UTXO consumed when sending BTC to another wallet. But if a user receives several small transactions, fees will be usually higher.
Swap BTC to 8 coins and 37 tokens
In our built-in Swap feature, which allows you to convert any coin or token to another at the push of a button, BTC can be swapped to 8 coins and over 37 tokens.
The blockchain coins that you are able to Swap BTC to and from in Klever are ETH, TRX, LTC, XRP, BNB, DGB, DOGE and DASH. Additionally, you can Swap BTC to and from our native token KLV and 36 other tokens based on Ethereum, Tron and Binance blockchains including AVA, BTT, USDT-ETH, USDT-TRON, KBTC, KETH, UNI, YFI, MATIC, LINK, CHZ, WIN, BAT and many more. Simply visit the Swap tab in Klever app to convert BTC and your other coins and tokens with ease, convenience, ensured privacy, high security and precision.
Director of Communications and Marketing at Klever.io