How does the bitcoin transaction fee be calculated? And who guide this?

1

When creating a transaction the Bitcoin-Qt client will determine the properties of a transaction and if the transaction is likely to need feeds the client will insist that a fee be added. The rate is 0.0005 BTC per 1K of data consumed by the transaction. If the transaction size is below 10K though and meets other criteria no fee is required:

Other clients may not have any requirement when sending. For instance, the Blockchain.info/wallet allows "Custom" send in which the fee is entered by the sender. Zero is a valid fee amount.

It really doesn't matter what the client or the user chooses, what matters are the level of fees the miner's require. If few miners will accept a transaction because the fee is too low, the transaction will simply just take longer to confirm, eventually.

So there is a competitive market for transactions. A miner can try to boycott transactions in which the fee is too low however the next miner might be willing to include the...

0 0
2

You can get realtime transaction fees calculated for you at bitcoinfees.21.co. If you are interested in how those numbers are calculated, read below.

First, when we quote a "Bitcoin transaction fee", we will usually quote one of two numbers:

Consumers care about the total fee. This is the total fee that you're paying in a transaction, such as 10,000 satoshis or 0.0001 bitcoins. This is probably the most important number for consumers as they only care about the fees associated with their particular transaction. Miners care about the fee per byte (or kilobyte). This is the total fee divided by the number of bytes in a transaction, such as 40 satoshis/byte or 0.0004 bitcoins/kilobyte. This is the most important measurement for miners. The reason is that they use this to decide whether to include your transaction in the blocks they attempt to produce, as they can only include about 1 million bytes of transactions in their blocks. As such, they prefer to include...
0 0
3

> How to calculate raw transaction fees for developers -

> Bitcoin Fees for Transactions

> Calculator for estimated TX-Fees

> Bitcoind - How to calculate transaction size before sending

> How does the bitcoin transaction fee be calculated?

> Add fee to bitcoin transaction

> Bitcoin raw tx fee

There's literally a lack of information, for developers, about this topic. This is merely to help people from making mistakes.

Hey danny

When building and broadcasting a raw bitcoin transaction, are transaction fees specified on the raw transaction, or by the service running bitcoind, such as https://blockchain.info/pushtx

The raw transaction specifies the transaction inputs (which supply value to the transaction) and the transaction outputs (which identify how much of that value goes to each output).

To specify a transaction fee, make sure the sum of the values of the outputs is LESS THAN the sum of the values...

0 0
4

This week, we’ve invited Ofir Beigel to guest blog for us. We’ll let him take it from here.

Recently, scaling bitcoin has been a hot topic for the bitcoin community. Why is this? Well, as bitcoin grows and more users hop onboard, a big priority is to ensure the network can efficiently handle the increasing transaction volume. And lately, many users have been expressing their worries over transaction delays caused by network congestion. In this post I’m going to talk a bit about how transaction confirmations work, and the role that fees play in the process.

Miners, bounties, and newly-generated bitcoins

In order to understand transaction confirmations, we’ll need to cover some key concepts of bitcoin mining. I won’t attempt to explain the whole process of bitcoin mining in this post, but I’ll try to simplify the process with this short explanation. Every day hundreds of thousands of transactions are sent and received on the bitcoin network. These transactions need to...

0 0
5
...
0 0
6

This video contains advanced concepts that were explained in previous videos. If you are new to Bitcoin it’s best to watch the previous tutorials before watching this one.

One of the major advantages of Bitcoin is that you can supposedly send money between any two points on earth for free. But if you’ve sent Bitcoins once or twice before you probably noticed that there are in fact transaction fees – so what’s going on here exactly ?

Before I explain how fees are calculated I want to explain what Bitcoin fees are. When miners order transactions into blocks inside the Blockchain they get paid twice – The first payment is by what you would call “the system” – which grants them a bounty for succeeding in entering their block of transactions. The second payment is the fees the users attached to the transactions that got included in that block.

But you don’t always have to pay these fees, there are certain rules that dictate if and when you need to pay them. Of...

0 0
7

Every Bitcoin transaction is subject to a fee paid by the sender. In contrast to bank fees charged at either a flat rate or as a percentage of transaction value, Bitcoin fees are based on the amount of data needed for encoding. Understanding this system is not difficult, but its nuances and non-intuitive nature confuse many Bitcoin users, new and experienced alike.

Understanding transaction fees can save you both money and time. This guide describes how the Bitcoin transaction fee system works and how to use it effectively.

An Expensive Payment

Fees usually account for a small share of a Bitcoin transaction. But sometimes a fee can approach or even exceed the amount being transferred. Let's consider a hypothetical case in which transaction fees seem to go haywire.

Alice runs a successful blog. At the end of each post, she displays a QR code to accept Bitcoin donations. Once every month, Alice sweeps the accumulated balance from the...

0 0
8

SAN FRANCISCO — Got some bitcoin? An internal dispute over the digital currency could soon mean financial losses, whipsawing prices and delays in processing payments.

It’s also possible that nothing much changes. It all depends on whether the people who maintain bitcoin can agree by July 31 to implement a major software upgrade — one designed to improve capacity on the increasingly clogged network.

Not everyone is on board. In particular, some bitcoin “miners,” who are rewarded for verifying transactions, aren’t supporting the changes. Any split between miners and others who use bitcoin, including a number of startups and a few big companies, could cause a panic in the $39 billion bitcoin marketplace.

So far, bitcoin’s value in U.S. dollars has soared amid the uncertainty. It’s currently at about $2,300, more than triple what it was a year ago. But bitcoin is notoriously volatile; because the price spiked so rapidly, it also fell quickly, and bitcoin has lost...

0 0
9
...
0 0
10
...
0 0
11

Please let me clarify.

the fees listed below are current as of the date of this post.

Fees for sending bitcoin

We don't charge a fee to send bitcoin out from your bitcoin wallet on any amount over 0.0001 BTC.
(Sending over 0.0001 bitcoin is free) The TX fee paid to the bitcoin miners is paid for you by Coinbase

If you send less than 0.0001 BTC, then there will be a mandatory TX fee added to pay the bitcoin miners. We won't pay the bitcoin TX fee when you send less than 0.0001 BTC.

Sending bitcoin from one Coinbase wallet to another Coinbase wallet is always free (no fee) no matter how little bitcoin you send.

There is no fee for receiving bitcoin.

Fees for sending and receiving fiat currency (USD, EUR, CAD, etc) to your Coinbase account.

Fee's for buying/selling bitcoin -- converting fiat currency to bitcoin

1%
There maybe a minimum fee of up to...

0 0
12

While Bitcoin is a platform for sending money from one person to another, it is decentralized, requiring a type of incentive to keep the system going. It comes at a great cost, and this has to be repaid somewhere. Bitcoin block rewards are only set up to be a temporary payment model, rather than permanent, with the end goal being survivability through the collection (and paying out) of fees.

The Order of Transactions

Transactions are given a “weight” of sorts to determine which ones should be prioritized in any given block, with those that have the highest weight being first. There are a few things that go into this calculation, which are:

Size (in kb): this is the actual data makeup of the transaction, comprised of metadata, inputs, and outputs Age: as the input coins get older, they gain more weight Fees: the more you pay, the more weight there is

Once you send out a transaction, these calculations are all going, and the weight will continually grow due to...

0 0
13
So let try answering this question without blinding you with science.

We do have to get a little bit technical but hang on in there, it will be worth it to really get to grips with Bitcoins potential. Bitcoins utilize the same technology that is leveraged in digital signatures, initiated by the cryptographers Martin Hellman and Whitfield Diffie in the year 1970. In 2007, some anonymous developer or group possessing the pseudonym Satoshi Nakamoto got hold of this technology and devised the software for the generation of digital currency. That is how the first cryptocurrencies started functioning.

“Complex mathematics verifies who owns the bitcoins .”

The complex mathematics verifies that a person spending 10 units owns them and cannot reuse the same 10 units again. To send bitcoins, you need two things: a bitcoin address and a private key. A bitcoin address isn’t like a bank account; you don’t need mountains of paperwork and ID to set one up. In fact, they are generated
...

0 0
14
Back to Table of Contents

What is the transaction fee?

When you send a transaction to the Bitcoin network you also pay a small fee. This is typically 0.0001 BTC per transaction but it varies. The computer in the Bitcoin network that includes your transaction in a block receives all of this fee. (MultiBit does not receive any of this fee.)

The rules for the calculated fee are a little complicated but mainly depend of how much space the transaction takes up in the block. You can see the size of the transaction by viewing the 'Transactions' tab. Select the transaction, right click and choose 'View transaction details. . .' Typically you pay 0.0001 BTC per 1000 bytes of transaction size.

TIP: you can reduce your fees paid by avoiding the receipt of lots of very small amounts of bitcoin. These tend to create large transactions when you spend your bitcoin and incur larger...

0 0
15

If you have sent a bitcoin payment in the last couple of weeks, you may have noticed that your transactions are taking much longer than expected to confirm.

We have received your emails.

Since, like the Bitcoin network, we are currently working through a backlog, we want to thank you for your patience. With the high volume of questions we're getting about delayed payments, we decided it would be best to write a short explanation about what's happening with many bitcoin transactions right now.

Transactions on the Bitcoin network itself aren't controlled or confirmed by BitPay, but by the bitcoin miners which group transactions into "blocks" and add those blocks to the Bitcoin "blockchain" – the shared historical record of all transactions. When a transaction has been added to a block six blocks ago, it's considered a done deal.

Currently, bitcoin network traffic is unusually high due to increasing demand for transactions per block. Block sizes are...

0 0
16

When creating a transaction the Bitcoin-Qt client will determine the properties of a transaction and if the transaction is likely to need feeds the client will insist that a fee be added buy bitcoin miner canada. The rate is 0.0005 BTC per 1K of data consumed by the transaction. If the transaction size is below 10K though and meets other criteria no fee is required:

Other clients may not have any requirement when sending. For instance, the allows "Custom" send in which the fee is entered by the sender. Zero is a valid fee amount.

It really doesn't matter what the client or the user chooses, what matters are the level of fees the miner's require. If few miners will accept a transaction because the fee is too low, the transaction will simply just take longer to confirm, eventually.

So there is a competitive market for transactions. A miner can try to boycott transactions in which the fee is too low however the next miner might be willing to include the...

0 0
17

People often claim that with Bitcoin “you can send money between any two points on earth for free”. While that is true in some cases, sometimes a transaction fee is required. The fee, when it is required, is usually worth less than 40 US cents.

The fees go to the miners to incentivise them to keep mining, which in turn keeps the Bitcoin network secure. They already get a reward of 25 XBT for each block they mine, but this reward halves every 4 years. The plan is that as the block reward diminishes over the time, it will be replaced by transaction fees.

So what decides when you have to pay, and how much?

Well, like everything else in Bitcoin, the fee structure is built into the network rules, which are defined as “what the reference client does”. When you attempt to send coins using bitcoin-qt (the current reference client), it goes through the following steps:

1. Pick which coins to spend

The client has to decide which of your coins to...

0 0
18

Last updated: 20th March 2015

Bitcoin transactions are sent from and to electronic bitcoin wallets, and are digitally signed for security. Everyone on the network knows about a transaction, and the history of a transaction can be traced back to the point where the bitcoins were produced.

Holding onto bitcoins is great if you’re a speculator waiting for the price to go up, but the whole point of this currency is to spend it, right? So, when spending bitcoins, how do transactions work?

There are no bitcoins, only records of bitcoin transactions

Here’s the funny thing about bitcoins: they don’t exist anywhere, even on a hard drive. We talk about someone having bitcoins, but when you look at a particular bitcoin address, there are no digital bitcoins held in it, in the same way that you might hold pounds or dollars in a bank account. You cannot point to a physical object, or even a digital file, and say “this is a bitcoin”.

Instead, there are only...

0 0
19

A new service is offering bitcoin users an answer to the common question: what is the optimum transaction fee?

Using network data from the past three hours, CoinTape lets users compare the current waiting times associated with various fee tiers, calculated in satoshis per byte.

It claims to predict delays with 90% confidence.

The default fee used by many bitcoin wallets is 10 satoshis (0.0000001) per byte. However, according to CoinTape, paying 20 satoshis (0.0000002 BTC) per byte will get you the fastest and cheapest transaction on the network.

For the average-sized bitcoin transaction, 645 bytes, this equates to a fee of 129 bits (0.000129 BTC) (note that this is calculated on a transaction's size, not its dollar value).

The most popular fee ratio CoinTape lists, 41–50 satoshis per byte, used in more than 30,000 transactions today alone, is double this.

Network competition

As the number of bitcoin transactions rise,...

0 0