Transaction Merging (bip125 relaxation)



Summary:

The context discusses the feasibility of transaction merging in a mempool. The first case is where an original transaction is created and additional outputs are added to it. This type of merging can be complex as one needs to track which of the two transactions confirm. Retroactive transaction merging could be more approachable for a service to implement, where N valid transactions are merged into one, with extraneous inputs stripped and change amount altered. However, the rules of bip125 currently make it unappealing as the absolute fee cannot be lowered. The text of the BIP document is written in a confusing way that does not make it clear that bip125 replacement requires fee rate increase. It is suggested that both a feerate and absolute fee increase be required.


Updated on: 2023-06-12T23:58:14.810726+00:00