Author: Tier Nolan 2015-07-02 13:13:35
Published on: 2015-07-02T13:13:35+00:00
One proposed way to protect against double spending in payment services is through creating a transaction with high fees. If a payment processor is willing to pay 0.1% fees and is handling 1000 BTC every block, it can create a transaction with 1BTC in fees, which would outbid an attacker trying to double spend a transaction of 0.1BTC. This method works like insurance, combining multiple small double spend threats and protecting them with a single transaction. However, it requires RBF and would not be compatible with first seen safe. Additionally, a 1BTC fee transaction in nearly every block would boost network security and avoid concerns about mining pools making secret deals with payment services. The proposal is not addressed in PR#1647, which only addresses miner policy, and may require agreement among wallet authors to implement.
Updated on: 2023-06-10T01:59:15.014741+00:00