Author: Prayank 2021-04-30 20:28:42
Published on: 2021-04-30T20:28:42+00:00
The writer begins by expressing hope for everyone's well-being, and sharing their own recovery from COVID-19. The article then delves into the topic of Bitcoin transactions and fee estimations. The writer questions the use of different estimations in wallets and explorers, and suggests that sharing mempool stats and allowing users to decide on the fee rate would be better. They compare this to estimating at what price a buy order will get filled in a certain time in the BTCUSD orderbook on any exchange.The writer considers current estimations misleading, as they can lead users to believe that a transaction with a certain fee rate will be included within a specific timeframe, which is not always the case. They propose an approach where wallets show mempool stats, leave the fee rate decision to the user, and follow different algorithms for automated bidding, including RBF (Replace-By-Fee) algorithms. The article includes a basic algorithm for automated bidding and suggests that such algos could be helpful for mobile wallets, where users could receive notifications every time a transaction is replaced with a new fee rate automatically. The writer seeks input on the proposed approach and wonders if it could work even when the user goes offline. They provide an example where Alice broadcasts Tx1 with 1 sat/vByte, but it is replaced with Tx2 (2 sat/vByte) after 2 blocks because Tx1 was not confirmed. Even if Alice shuts down her system or switches off mobile data, Tx2 has some information that Bob's node can use to replace the transaction with Tx3 and use a fee rate of 3 sat/vByte.
Updated on: 2023-05-21T02:21:47.793978+00:00