The mobile application cashapp specifically says I can send bitcoin to any address anywhere in the world for free.

Coinbase also says they can do off the network transactions instantly and for free as long as both parties have a coinbase address...how does this work ? Does a miner check these transactions ?

Where does the concept of average transaction fee come into place ? https://ycharts.com/indicators/bitcoin_average_transaction_fee

1 Answer 1


These transactions don't go through the bitcoin network, it’s just coinbase/cash app crediting one users account and debiting another.

  • So I'm assuming coinbase and cashapp have something like a bitcoin core main node, with child nodes and they can issue addresses.... credit and debit how ever they want ?
    – Jay
    Commented Jan 16, 2021 at 1:13
  • They just need to update their local database which is used to show balance in app/website for a user account. There are no bitcoin transactions involved in it.
    – user103136
    Commented Jan 16, 2021 at 1:27

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.