BIP Proposal: Revised: UTPFOTIB - Use Transaction Priority For Ordering Transactions In Blocks

Summary:

Damian Williamson is seeking a co-author to collaborate on a Bitcoin Improvement Proposal (BIP) that aims to address transaction reliability issues in Bitcoin. The proposal has undergone minor changes and additions, with the specific terms of the CC-BY-SA-4.0 licence updated to include additional permissions available under the MIT licence.The proposal's primary objective is to provide full transaction confirmation for every valid transaction while eliminating the possibility of sending transactions with lower fees than those acceptable for eventual transaction confirmation. To achieve this, each valid transaction in the mempool will be provided with an individual transaction priority based on its fee and time waiting in the transaction pool. Dynamic target block size will be used instead of block size or weight. This proposal emphasizes operational reliability and resolving issues before they become significant problems.The proposed method involves assigning a transaction priority to each valid transaction in the mempool and selecting transactions to include in the current block using probability in transaction priority order until the target block size is met. The process maximizes transaction reliability and overcomes transaction bandwidth limit while maximizing total fees paid per block without reducing reliability. However, it may initially lower total transaction fees per block and must first be programmed.To implement this proposal, nodes need to have a loose understanding of the average size of the transaction pool as a requirement to enable future changes to the way blocks are constructed. A new network service should be constructed to meet this need, which should have an individual temporary Serial Node ID, accept communication of the number of valid transactions in the mempool of another valid Bitcoin node along with the Serial Node ID of the node whose value is provided, expire any value not updated for k minutes (k = 30 minutes? ), broadcast all mempool information the node has every m minutes (m = 10 minutes? ), among other requirements.The proposal offers several benefits, including maximizing the possibility for consumer and business uptake, providing additional block entropy, and removing multiple potential incentives for unnecessarily filling blocks or flooding the mempool with transactions. It addresses the issue of spam and very low fee transactions, and infinite block size resulting from it, by suggesting the use of dust level addresses.Adoption of this proposal and adherence results in a reliable, stable fee paying transaction confirmation service and a beneficial auction. The proposal is necessary to validate full transaction reliability and enables scalability of Bitcoin. If not this proposal, an alternative is necessary. A hard fork may be required if necessary.

Updated on: 2023-06-12T22:50:45.565883+00:00