High activity on exchanges vs. low transaction rate on blockchain

0

I a bit puzzled to see high transaction rates on BTC exchanges yet read that the blockchain only confirms about 6 transactions per second. Given that every transaction on an exchange requires also a transaction on the blockchain, how does it work? Is my perception of the volume just wrong? Or are there quiet times at exchanges when the blockchain can catch up?

Christian Lindig

Posted 2017-12-22T10:18:25.203

Reputation: 103

Answers

4

Given that every transaction on an exchange requires also a transaction on the blockchain, how does it work?

They don't, movements on exchanges are internal, not Bitcoin transactions.

Anonymous

Posted 2017-12-22T10:18:25.203

Reputation: 10 054