if I set a transaction fee from multibit for example, is it a fee I'm paying or is it a fee that the other party is paying; and to whom does that fee go to?
2 Answers
The fee goes to the miners and is deducted from your wallet. Including a fee in your transaction improves the chance that your transaction will quickly be included in a block.
The transaction fee is an incentive on the part of the bitcoin user to make sure that a particular transaction will get included into the next block which is generated.
