Author: Bram Cohen 2015-11-07 01:25:53
Published on: 2015-11-07T01:25:53+00:00
The article focuses on the issue of transaction fees in Bitcoin wallets for consumers. The author suggests that transaction fees should be determined by supply and demand, with a reward for patience. To make it easier for users to set transaction fees, he recommends having a maximum fee and a patience parameter in the wallet user interface. To determine transaction fees, the author suggests using locally verifiable information such as past transaction fees, the amount paid in the past, the current time, and how much the user is willing to pay by when. He also provides a formula for calculating transaction fees based on a starting point and increasing the fee for each new block.In addition to discussing transaction fees, the article offers some techniques for reducing them. One such method is consolidating unspent transaction outputs (utxos) during off-peak times or when fees have increased. However, this generates intermediary value that increases the size of the blockchain and has unclear privacy implications. Another way to lower fees is by using signing tricks such as creating a new extension for multiple inputs to a transaction or allowing multiple inputs with the same key to result in a single signature. While the former has little downside, the latter lowers privacy as it reveals the association between utxos. Finally, the article cautions against not counting the bytes of p2sh scripts used before, as it encourages privacy-averse behavior and necessitates a costly data structure for validation.
Updated on: 2023-06-11T00:57:04.342354+00:00