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9 votes
Accepted

What does "Waste Metric" mean in the context of Coin Selection?

Coin Selection Funds are tracked in discrete portions, so called Unspent Transaction Outputs (see UTXO model). Generally, a wallet's funds are split across multiple to numerous such UTXOs. When a ...
Murch's user avatar
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9 votes
Accepted

How can I cheaply consolidate P2PKH outputs?

There really is no better answer than "wait for fees to come down". That might not be the most satisfying answer, but fees were below 2 sat/vB only a month ago, and the vast majority of ...
Vojtěch Strnad's user avatar
8 votes
Accepted

How can I avoid paying transaction fees?

Is there a way to transfer/import bitcoin from one address to another in order to avoid transaction fees? No. It is not possible to move btc between addresses without publishing a transaction to the ...
chytrik's user avatar
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7 votes

Why can the block production rate be as low as two per hour?

The time to produce the next block is completely unaffected by the number of unconfirmed transactions. The time is generally expected to follow a Poisson distribution as explained in answers to a ...
RedGrittyBrick's user avatar
6 votes

What is the best suitable transaction fee to avoid high fees but still get confirmed?

First a clarification: Anyone giving a flat fee in response to this question is not giving sufficient information. Transactions are (generally) selected by fee rate. This means that besides the flat ...
Murch's user avatar
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6 votes
Accepted

There are a lot of 100 input transactions in some blocks, what's the reason?

On 2022-05-11, someone dumped within an hour about 100 blocks worth of transactions on top of the mempool. The transactions you point out are part of that dump. If you look closely, you'll notice that ...
Murch's user avatar
  • 76k
5 votes

How do transaction fees exacerbate instability in Bitcoin in the future?

As Nick answered quite adequately: After subsidy has diminished sufficiently as soon as a block is mined that clears out the mempool there will be no income for a miner that mines a successor block, ...
G. Maxwell's user avatar
  • 7,727
5 votes
Accepted

What does the global transaction limit mean in practice?

The Bitcoin network uses the blockchain to form consensus on the journal of transactions. The blocks commit the network to a specific order of events and guarantee propagation. Blocks are found ...
Murch's user avatar
  • 76k
4 votes
Accepted

Is there a solution to paying high fees when opening and closing lightning channels once we hit a fee only market?

'Under the hood' of a lightning network channel open/close, a user will be sending a bitcoin transaction. In order to send a bitcoin transaction, a fee is paid to miners. One advantage of having a ...
chytrik's user avatar
  • 18.3k
4 votes

Does LN require an on-chain "emergency lane" to mitigate systemic risks?

As far as I understand this is not needed. Let us assume we have an congested mempool and someone publishes an old channel state. This transaction will not be mined directly as the mempool is ...
Rene Pickhardt's user avatar
4 votes

What happens if your transaction is never confirmed?

Whether a sender and recipient can rely on a transaction is a probabilistic matter, but a transaction's state is binary in regard to the current chain tip. Either, the transaction is confirmed and the ...
Murch's user avatar
  • 76k
4 votes

What were 'high-priority' transactions in Bitcoin Core v0.9?

Historically it was not required to include a fee for every transaction. A large portion of miners would mine transactions with no fee given that they had enough "priority". Today, low priority is ...
Haseeb Saeed's user avatar
4 votes

How to tell congestion info on the Bitcoin network?

There's really no such thing as "congestion" in Bitcoin. Rather, Bitcoin has a limit on how many transactions it can process, which is 1 block (1 MvB/4 MWU, around 2000-4000 transactions) ...
Vojtěch Strnad's user avatar
3 votes
Accepted

What were 'high-priority' transactions in Bitcoin Core v0.9?

Priority was calculated based on the age of the inputs. Older and larger inputs were given a higher priority than new and low valued inputs. This allowed transactions to pay no transaction fees but ...
Ava Chow's user avatar
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3 votes
Accepted

Bitcoin core's estimatesmartfee gives same estimate on ECONOMICAL and CONSERVATIVE mode

The two modes don't just unconditionally return the same thing. They do different calculations and can return different results under certain conditions, particularly when fees are very variable for ...
Ava Chow's user avatar
  • 70.9k
3 votes

What is the best suitable transaction fee to avoid high fees but still get confirmed?

What is appropriate varies depending on network conditions, transaction load and, what fees other people are sending. Bitcoin Core includes a fee estimation when sending transactions in bitcoin-qt, ...
Willtech's user avatar
  • 3,279
3 votes
Accepted

Where can I find the current fee level for LTC?

Looking at Litecoin coming from Bitcoin, most blocks have plenty of space: right now most are between 2 and 30 transactions only. It turns out, that most transactions appear to only pay the default ...
Murch's user avatar
  • 76k
3 votes
Accepted

How do you reliably estimate mining fees?

TL;DR: you don't, you enable RBF and adapt the transaction fee to the block space market (or use a wallet that does). Best effort(s) One is interested in the cheapest reliable fee estimation. That is, ...
Antoine Poinsot's user avatar
3 votes

How can transaction fees be explained in a simple way?

Does Alice pay more or does Bob get less? (the fee has to come from somebody) Alice pays more. It works like this: Alice submits a transaction with inputs adding up to, for example, 0.016 BTC. This ...
ieatpizza's user avatar
  • 2,068
3 votes
Accepted

With constant TX throughput and increased TX requests will the mempool and/or fees grow indefinitely?

Increasing demand for on-chain transactions and static block size means transaction fees will be higher. They can't grow indefinitely since there is a finite amount of money anyone in the world is ...
Vojtěch Strnad's user avatar
3 votes
Accepted

Is Bitcoin fee attack preventable?

I don't think it is easily preventable but it is expensive and it would be difficult to prepare without being noticed and might be difficult to execute in a way that couldn't be detected and countered,...
RedGrittyBrick's user avatar
2 votes
Accepted

On the feasibility of fees

1) Bitcoin is a gossip network in which each (full) participant checks all activity of all other (full) participants. Such systems scale notoriously badly as the cost for each network event scales ...
Murch's user avatar
  • 76k
2 votes
Accepted

Are any miners still considering priority in their transaction selection?

Generally, no miners still use the priority system for selecting transactions. You can easily test this by spending a very old UTXO (e.g. 1 BTC that has remained unspent for several years) and paying ...
Ava Chow's user avatar
  • 70.9k
2 votes

Do transaction fees remain stable in bitcoins, or adapt to purchasing power?

Your understanding is correct. If the required fee rate on the network remains the same (denominated in BTC) and the value of BTC rises against USD, then the transaction fees rise in USD terms. In ...
jnewbery's user avatar
  • 1,060
2 votes
Accepted

Does Bitcoin's high price make payments in stores less viable?

Bitcoin for Point-of-Sale Bitcoin is inherently ill-suited as a form of instant payment. This is due to transactions needing confirmations before they become reliable which even at best times can ...
Murch's user avatar
  • 76k
2 votes

Can zero-fee txs get into a block?

Zero-fee transactions are permitted by the protocol rules, but there is no incentive to give away block space without getting paid for it. Generally zero-fee transactions are a thing of the past since ...
Murch's user avatar
  • 76k
2 votes

How do transaction fees exacerbate instability in Bitcoin in the future?

Suppose I see that the Bitcoin network has just created block 100. I can mine on top of that block, as the protocol intends. Or, I could mine my own block 100 to take the mining reward. If enough ...
Nick ODell's user avatar
  • 29.4k
2 votes

Why does Litecoin have lower transaction fee than Bitcoin?

Litecoin's blockspace supply is greater: Litecoin's block interval is a fourth of Bitcoin's at 2.5 minutes SegWit is activated, limiting blocks to 4MB weight instead of 1MB size. With leisurely ...
Murch's user avatar
  • 76k
2 votes

What is a fee market? Does it mean that blocks should be full, esp. after several halvenings?

The fee-market refers to the tension between 1) users who want to have their transactions confirmed as quickly as possible and ... 2) miners, who can only mined blocks with a fixed confirmation ...
James C.'s user avatar
  • 2,521
2 votes

Lightning incentive for micro-cheating?

When the total capacity of the channel is less than it costs to close the channel, neither party has an incentive to close the channel. If broadcasting an outdated commitment transaction returns some ...
Murch's user avatar
  • 76k

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