Why do transactions with lower input age require higher fees?

1

All miners run a full node, indexing all the unspent transaction outputs (UTXO). Thus, from the computational difficulty perspective, there's no difference between verifying old and new coins that are being spent.

However, there's a reasonable assumption that all miners (and, after all, all honest Bitcoin users) want to protect the value of their assets and thus have an incentive to keep Bitcoin network healthy. Spamming the network with a great number of transactions moving the same coins back and forth among a few addresses, with no apparent purpose, is quite easy and can be carried out by any malicious user. This extra overhead is obviously not vital for the network and might even cause a delay in confirmation of other transactions.

To fight this, Bitcoin has a notion of Bitcoin Days Destroyed which prioritizes transactions spending older coins. Miners are not forced to employ this strategy (by the protocol), but they do so because it's good for the network, and...

0 0
2

1) There is no motivation, asides your goodwill, or possibly wanting to support some useful Bitcoin tools, like the Bitcoin Faucet (transaction fees could eat up a lot of coins there).

2) It's a matter of how their pools and clients are set up. Some want to support the community by allowing no-fee transactions to be included in a block (as it costs them nothing), while others want to encourage people to pay fees by only including transactions with fees.

3) Technically, it might be less likely to be included if it gets really big in terms of data size (upwards to filling a block), but in most cases it won't matter (at least for now). Amount of Bitcoins sent doesn't really matter at the moment, but transactions on really small amount of coins can be discriminated against in the future should spamming them become more prevelent.

All in all, it is encouraged that you pay your dues when sending transactions, as it helps the Bitcoin project grow. If nobody was paying...

0 0
3

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 adoption of the new segwit transaction format this would eventually allow a capacity equivalent of blocks with ~1.7-2.3 MB size.

Litecoin's blockspace demand is much lower:

Bitcoin does about 250k transactions per day with the mempool never completely flushing out, Litecoin has just slightly over 19k, while it could do about 2,000k.

Bitcoin is operating with demand exhausting the supply continuously, thus finding actually a price for blockspace. In the past months we've seen feerates move between 1 and 540 satoshi/byte. Now that the latest hype has cooled down slightly, we can observe a daily and weekly cycle, under the week going from ~8 to ~400 satoshi/byte, dropping down to as low as 2 satoshi/byte on weekends.

On the other hand, Litecoin is operating with demand at...

0 0
4
...
0 0
5

Since the early days of bitcoin, one of the many things people mentioned as an advantage over other systems is “free” or low transaction fees. This has changed over time, leading some users to support the concept and others who feel that fees are not what they signed up for.

Here, we will describe the function of transaction fees, how they work, and also how to pay “the right fee.”

Why do we need to pay transaction fees?

In bitcoin’s early history, usage was virtually zero, so users could create fee-less transactions with issue. Once usage increased to a point where transactions competed with each other, paying fees became a necessity for a transaction to be promptly confirmed.

Anti-spam/DoS

One purpose of transaction fees is as an anti-spam/DoS measure. By prioritizing a transaction based on its fee, we ensure anyone attempting to congest the network by broadcasting many...

0 0
6

Today, Ofir Beigel is back to answer some of our users’ most common questions about fees. To read his first post on transaction fee basics, click here.

In our previous post, we covered the what, why, and how surrounding bitcoin transaction fees. In today’s post, I want to dig further into the details and answer some of the most common questions about bitcoin transaction fees.

How can I calculate my transaction size so I’ll know what fee to attach to it?

You can’t easily do this on your own, and thankfully, many wallets can do this for you. For example, the Blockchain Wallet uses dynamic fees that calculate the required fee for you so that your transaction will confirm as reliably and quickly as possible. You also have the option to set your fees manually by using Advanced Send. Different wallets handle fees differently, and you should find out how your wallet handles the fees for you (if at all).

What happens if I don’t attach any fees to my bitcoin...
0 0
7

On 01/04/2014 11:13 AM, Timwi wrote:

I think you misunderstood; you can create a transaction for less than 0.01 BTC.

In Bitcoin, yes. In Electrum, no. Please fix the UI so that it allows it.


Reply to this email directly or view it on GitHub
#485 (comment).

According to an article on fees, the fee is 0.000,1/10,000 bytes unless
the outputs are all at least 0.01 BTC. Normally this is 0.000,1 per
transaction.

https://en.bitcoin.it/wiki/Transaction_fees

This is the easy answer at the beginning of the article. There is a
more complex one based on what is 'high priority'.

Baring 'high priority' Bitcoin's appreciation has made transfer fees
around $0.08 USD for anything less than $10.00. Can we send money
greater than 0.01 BTC without paying in Electrum?

Not in 1.8. I haven't used sent this kind of amount in a while.

Shawn...

0 0
8

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
9
...
0 0
10

If you’re reading this post I assume that like many others, you sent a bitcoin transaction and was kind of confused as to why it’s still listed as “unconfirmed” or “pending” after a few hours or so.

I mean Bitcoin transactions are supposed to be instant right?

In this post I want to try and explain in a very basic way how a Bitcoin transaction works and why the fee that you attach to each transaction has a crucial role in how long it will take the transaction to go through the network.

Here’s what happens when you send Bitcoins to someone

Whenever you send someone Bitcoins, the transaction goes through different computers running the Bitcoin protocol around the world that make sure the transaction is valid. Once the transaction is verified it then “waits” inside the Mempool (i.e. in some sort of a “limbo” state).

It’s basically waiting to be picked up by a Bitcoin miner and entered into a block of transaction on the Blockchain. Until it is picked...

0 0
11

Bitcoin is the currency of the Internet: a distributed, worldwide, decentralized digital money. Unlike traditional currencies such as dollars, bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. As such, it is more resistant to wild inflation and corrupt banks. With Bitcoin, you can be your own bank.

If you are new to Bitcoin, check out We Use Coins and Bitcoin.org. You can also explore the Bitcoin Wiki:

How to buy bitcoins worldwide
Buying Reddit Gold with bitcoin

Will I earn money by mining bitcoin?

Security guide for beginners - (WIP)

Community guidelines

Do not use URL shortening services: always submit the real link. Begging/asking for bitcoins is absolutely not allowed, no matter how badly you need the bitcoins. Only requests for donations to large, recognized charities are allowed, and only if there is good reason to believe that the person...
0 0
12

Bitcoin transaction fees are primarily determined by the two main factors. The amount of congestion and traffic on the bitcoin network, and by the size of the transaction in bytes of data.

The bitcoin network has a limited number of transactions it can process per minute. As the demand for transaction space increases, the required fees to get a transaction processed quickly increase along with it. Bitcoin nodes give an estimate fee to get a transaction confirmed within an estimated period of time. This fee is expressed as an amount of bitcoin per byte of data. The fees are NOT dependent on the amount of bitcoin you are sending. None of these fees go to Airbitz but rather to the public bitcoin network as payment for securing and validating transactions.

As a normal user, you do not see how large your transaction is in bytes of data but only in amount of bitcoin sent. The typical transaction size is approximately 230 bytes of data which at the time of this writing would...

0 0
13

First of all: your wallet probably sucks, consider changing it.
Second: Don’t worry your coins are safe. Within three days your transaction either confirms or your coins “reappear” in your wallet. This is the short answer and it is probably correct about 99% of the times, but let’s dive deeper for in-depth understanding, then examine your options if you don’t want to just wait.
Update: As /u/ismith23 noted, from Bitcoin 0.14 “transaction reappearance” happens after 2 weeks.

A more correct answer might look like this: when you send a transaction with too low fees, it stays in the mempool of most full nodes (1) until it either expires, (2) until a miner picks it up and confirms in a block or (3) until some magic makes (1) or (2) happen.

Sweet, isn’t it? Let’s decompose this sentence in the rest of this article.

1. When you send a transactions with too low fees…
Ok, but how low?

0 0
14

The Bitcoin network is made up of people who send transactions and miners--people who process and confirm the transactions. Miners spend their time and resources to build extremely advanced computing power to process transactions. They get to keep the transaction fees from the transactions they confirm on the network. If a transaction is sent with a very small or no fee, it is not worth their time to process it, so it can get skipped. The transaction can be skipped over and over again until some miner finally confirms it. This can take hours.

Transactions sent to your Coinbase account Bitcoin addresses will need 3 confirmations before being marked as "complete" and available in your account balance. On average, each confirmation takes about 10 minutes. To check and see how many confirmations a transaction has, you can look up the transaction in your Coinbase account by clicking on it. You will then see its status.

You can also view the status on any bitcoin...

0 0
15

EntityFramework

This is a .net ORM Mapper Framework from Microsoft to help you talking with your Database in an object oriented manner. Wikipedia

Database Transaction

A database transaction, by definition, must be atomic, consistent, isolated and durable. Database practitioners often refer to these properties of database transactions using the acronym ACID. Transactions in a database environment have two main purposes:

To provide reliable units of work that allow correct recovery from failures and keep a database consistent even in cases of system failure, when execution stops (completely or partially) and many operations upon a database remain uncompleted, with unclear status. To provide isolation between programs accessing a database concurrently. If this isolation is not provided, the program's outcome are possibly erroneous. Wikipedia

.NET Transactions

A .NET Transaction can be used in different ways by different frameworks to support...

0 0
16

Bitcoin transactions are instant - the confirmations aren't. It usually takes less than an hour for the first confirmation.

Someone could try a double spend attack and would have a 50% chance that Starbucks gets the money and 50% chance he gets the money back to his other address he used for the double spend.

This said, starbucks should wait for one confirmation before they'd accept the payment.

A few days ago on #bitcoin or #bitcoin-dev on freenode I saw someone explaining this: They could connect to a few big mining pools, then wait about 10 seconds before continuing, then they should be able to detect double spends if there are any. This decreases double spend risk quite a lot.

Charging a transaction fee will increase the chances that a miner will include your transaction in the block he mines.

A few miners don't include transactions without fees, if you want to ensure that your transaction gets included you should set the fee a bit higher than...

0 0
17

Table of contents:

AboutWhat is Changelly?How does Changelly work?Why should I trust you?Why doesn’t Changelly fix rates?AccountsWhy should I enter my email?What is the 2-factor authentication?How do I delete my account?TransactionsWhat’s the wallet address?How do I get a wallet address?What's the recipient’s address?What is a hash?How do I buy coins?What are network fees?How do I cancel my transaction?Why is my final amount different?When should I receive my money?Why is my wallet address recognized as invalid?Why does my transaction take so long?Why is my transaction still waiting for payment if I've already paid?Destination tags, memos and messagesWhat is a memo?What is a destination tag?What is a message?Bank card paymentsWhat currencies does Changelly accept?How do I buy cryptos using a bank card?Can I use bank cards of another region?Can I pay with PayPal?Can I pay with another currency?Are there any restrictions on bank card payment?

About

What is...

0 0
18

Much of the media coverage of the Quebec student protests has dismissed the protestors as cranky middle and upper-middle class children trying to protect their unfair privilege.

And in fact, the vast majority of today’s university students do come from relatively well-off families. But rather than weakening their position, this supports the protestors’ claims that we have a serious problem with access to education – a problem that would only be exacerbated by tuition hikes.

Instead of recognizing this, most media commentary perpetuates a discourse of austerity, demanding that students share the pain that other public service users are suffering.

Here are seven reasons why we would all be better off if we increased public investment in higher education and reduced the burden that high tuition fees impose on students and their families.

1. Making university education more affordable would allow more Canadians to access this key tool for social...

0 0
19

Commission fee can be included in any transaction in the Bitcoin network.

Principles of operation

Currently a large amount of transactions is processed in a way that commission isn't necessary. At the same time in case if transaction has a lot of entry points (e.g. it carries large amounts of data) a small commission is not uncommon.

Any miner can be the one who processes the transaction and earns the commission fee. When the network finds a new block it includes all information about transactions including their commission. Thus any user of group of users who find that block will gain both the reward for the block and the commission fees for every transaction included in it.

Including commission in a transaction is a voluntary decision but a user who finds a block can attach any transactions he wants to the said block. That way transactions with 0 commission have the lowest priority when transactions with even the minimal possible commission (~0.0001...

0 0
20

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
21

Why transactions are marked as pending:

If transactions have less than one confirmation from the Bitcoin network, they are marked as pending.

Why your transaction may have been pending for longer than expected:

Your transaction may take a long time to move from the pending state to the confirmed state for the following reasons: The wallet that the transaction originated from set a low fee on the transaction and has not been accepted by the Bitcoin network yet. The Bitcoin network could be under high contention due to high transaction volumes and so transactions can naturally take a long time to confirm. What can I do if my transaction has been pending for too long: If the transaction has been pending for longer than expected, check with the sender of the transaction to see if the fee set on the transaction was appropriate. If the fee seems appropriate try to request the "transaction ID" of the transaction and contact us at support@bitgo.com so that we can open a...
0 0
22

Who is Silver.com?

Silver.com is one of the premier destinations for investing in physical silver and gold bullion, as well as other precious metals products. Our company allows savvy and self-directed investors to purchase precious metals and have them delivered directly to their door. To see what others are saying about us, read some third party

Silver.com reviews

.

How do I buy from Silver.com?

Our best-in-class e-Commerce website allows customers to easily and quickly place orders, 24/7/365, based on live spot prices from worldwide exchanges. Our pricing updates every few seconds during market hours, so you are always paying the most up-to-date prices for your precious metals products. We also accept orders during off-market hours, allowing customers to lock in pricing on weekends, at night, on holidays, or at any other time throughout the year.

What products does Silver.com sell?

We offer an extremely wide selection of products,...

0 0
23

I’ve always been a do-it-yourself investor. This habit started around age 19 with a series of ridiculous speculative trades in individual high-tech company stocks. “This stock is sure to go through the roof”, I would think, “because their products are so great.”

This is a terrible way to invest.

But after a few early financial haircuts and the subsequent 20 years of reading an investment book or two every year, I’ve come to appreciate the much more boring and successful strategy of extremely long-term investing in extremely low cost index funds. Nowadays, I don’t just avoid trying to guess the short-term movements of individual stocks. I avoid looking at financial markets and news entirely, for weeks or months at a time.

This is a much better way to invest. In fact, doing just this will not only put you ahead of most average Joes, but you will also beat the vast majority of expensive personal financial advisers and professional investors as well. The reason is...

0 0