Block chain fee proposal worked out in more detail



Summary:

The author describes their process of working on a fee proposal. The context then shifts to a discussion of how deposits into a channel work as a means of payment, with an example involving A and B. The amount to be paid is 1.000 BTC, with an extra 1.997 BTC stored in the channel and a required fee of 0.003 BTC for the commit tx. The anchor tx output size is 3.000 BTC. Next, A makes a microtx to B of 0.500 BTC, with an extra fee of 0.001 BTC required for HTLC. Commit tx outputs are described for when the tx is locked or released to either A or B, as well as if it were returned to A. Similarly, B makes a microtx to A of 1.000 BTC, with an extra fee of 0.001 BTC required for HTLC, and commit tx outputs are again described. The algorithm is summarized as follows: the channel creator pays the fee initially, while non-fee parts are shifted around during channel use. Extra fees required for HTLCs are deducted from the HTLC itself, and negative-sized HTLCs are avoided. The author notes that changing the fee size based on blockchain market conditions has not yet been covered.


Updated on: 2023-05-24T00:36:44.787420+00:00