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judymcconville@roadrunner.com 2017-04-30 17:21:44 -07:00
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@ -292,7 +292,7 @@ Transaction fees are calculated based on the size of the transaction in kilobyte
Over time, the way transaction fees are calculated and the effect they have on transaction prioritization has been evolving. At first, transaction fees were fixed and constant across the network. Gradually, the fee structure has been relaxed so that it may be influenced by market forces, based on network capacity and transaction volume. Since at least the beginning of 2016, capacity limits in bitcoin have created competition between transactions, resulting in higher fees and effectively making free transactions a thing of the past. Zero fee or very low fee transactions rarely get mined and sometimes will not even be propagated across the network. Over time, the way transaction fees are calculated and the effect they have on transaction prioritization has been evolving. At first, transaction fees were fixed and constant across the network. Gradually, the fee structure has been relaxed so that it may be influenced by market forces, based on network capacity and transaction volume. Since at least the beginning of 2016, capacity limits in bitcoin have created competition between transactions, resulting in higher fees and effectively making free transactions a thing of the past. Zero fee or very low fee transactions rarely get mined and sometimes will not even be propagated across the network.
In Bitcoin Core, fee relay policies are set by the +minrelaytxfee+ option. The current default +minrelaytxfee+ is 0.00001 bitcoin or a hundredth of a milli-bitcoin per kilobyte. Therefore by default, transactions with a fee less than 0.0001 bitcoin are treated as free and are only relayed if there is space in the mempool, otherwise they are dropped. Bitcoin nodes can override the default fee relay policy by adjusting the value of +minrelaytxfee+. ((("fee relay policies")))((("minrelaytxfee option")))In Bitcoin Core, fee relay policies are set by the +minrelaytxfee+ option. The current default +minrelaytxfee+ is 0.00001 bitcoin or a hundredth of a milli-bitcoin per kilobyte. Therefore by default, transactions with a fee less than 0.0001 bitcoin are treated as free and are only relayed if there is space in the mempool, otherwise they are dropped. Bitcoin nodes can override the default fee relay policy by adjusting the value of +minrelaytxfee+.
Any bitcoin service that creates transactions, including wallets, exchanges, retail applications, etc. _must_ implement dynamic fees. Dynamic fees can be implemented through a third-party fee estimation service or with a built-in fee estimation algorithm. If you're unsure, begin with a third-party service and as you gain experience design and implement your own algorithm if you wish to remove the third-party dependency. Any bitcoin service that creates transactions, including wallets, exchanges, retail applications, etc. _must_ implement dynamic fees. Dynamic fees can be implemented through a third-party fee estimation service or with a built-in fee estimation algorithm. If you're unsure, begin with a third-party service and as you gain experience design and implement your own algorithm if you wish to remove the third-party dependency.