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Topic: Better way to reduce transaction fee (Read 1985 times)

full member
Activity: 120
Merit: 100
March 05, 2014, 04:22:08 AM
#32
How will the network operate after all Bitcoins are mined?  I have no idea!

we have 20 more years to figure it out - and perhaps only transaction fees will make this possible..

I do start to worry about the time when mining reward become to zero.
I remembered that each block size has limitation of 1 MB .
So the average transaction number per second is about 7.
Total max transaction number of a block is about 7(transaction)x60(sec)x10(min)=4200
We used to decided transaction fee in terms of fiat so no matter what price of a btc is, the fee is always low.
So if the price of each transaction is 0.1 usd, the average total transaction fee of a block is just 4200x0.1=420 usd which is far from current earning.
Where am I wrong?



given the amount of dust transactions, the average transactions per second might be less then one.
newbie
Activity: 22
Merit: 0
March 05, 2014, 03:07:27 AM
#31
If you do not want to pay a transaction fee why dont you -addnode=192.3.11.20 and relay to Eligius.
donator
Activity: 1218
Merit: 1079
Gerald Davis
March 04, 2014, 11:27:44 AM
#29
How will the network operate after all Bitcoins are mined?  I have no idea!

we have 120 more years to figure it out - and perhaps only transaction fees will make this possible..

FYPFY.
legendary
Activity: 1428
Merit: 1000
March 04, 2014, 11:25:13 AM
#28
How will the network operate after all Bitcoins are mined?  I have no idea!

we have 20 more years to figure it out - and perhaps only transaction fees will make this possible..

I do start to worry about the time when mining reward become to zero.
I remembered that each block size has limitation of 1 MB .
So the average transaction number per second is about 7.
Total max transaction number of a block is about 7(transaction)x60(sec)x10(min)=4200
We used to decided transaction fee in terms of fiat so no matter what price of a btc is, the fee is always low.
So if the price of each transaction is 0.1 usd, the average total transaction fee of a block is just 4200x0.1=420 usd which is far from current earning.
Where am I wrong?




you are wrong, because there will be more transactions then 7/sec.
so all transactions will fight for their place in a block and everybody will obviously prefer high fee over low fee

pools can even decide for themselve what min fee they require a transaction to have before they will include it

EDIT: i forgot: as there will be less coins created its likely the price will be higher
newbie
Activity: 16
Merit: 0
March 04, 2014, 11:14:51 AM
#27
How will the network operate after all Bitcoins are mined?  I have no idea!

we have 20 more years to figure it out - and perhaps only transaction fees will make this possible..

I do start to worry about the time when mining reward become to zero.
I remembered that each block size has limitation of 1 MB .
So the average transaction number per second is about 7.
Total max transaction number of a block is about 7(transaction)x60(sec)x10(min)=4200
We used to decided transaction fee in terms of fiat so no matter what price of a btc is, the fee is always low.
So if the price of each transaction is 0.1 usd, the average total transaction fee of a block is just 4200x0.1=420 usd which is far from current earning.
Where am I wrong?


legendary
Activity: 2053
Merit: 1356
aka tonikt
March 04, 2014, 08:40:07 AM
#26
of course the fee shall be measured/paid per byte.
doing it per kilobyte is just stupid.
legendary
Activity: 2212
Merit: 1199
March 04, 2014, 08:29:49 AM
#25
How will the network operate after all Bitcoins are mined?  I have no idea!

we have 20 more years to figure it out - and perhaps only transaction fees will make this possible..
hero member
Activity: 607
Merit: 500
March 04, 2014, 07:42:41 AM
#24
Not sure if you are aware that fees will be 1/10th of what they are now as of version 0.9.

Is there an ETA for version 0.9 or will it release 'when it's done'?

Bitcoin 0.9.0rc2 is available for testing so I guess it won't take long anymore.
Perhaps a final version in 2 weeks?

Yes yes Smiley I am already testing it! Works fine @ win7 64bit

there are some problems for Debian 7 user (1 bug was reported)

Actually, only the minimum tx RELAY fee will be reduced to 0.00001. Which means that network nodes will accept transactions with such low fee and relay them further. There is a separate setting for fee for adding tx to the block by a miner. That second fee will be unchanged, so effectively the fee remains unchanged.
member
Activity: 96
Merit: 10
March 04, 2014, 03:01:16 AM
#23
How will the network operate after all Bitcoins are mined?  I have no idea!
legendary
Activity: 2212
Merit: 1199
March 03, 2014, 05:43:41 PM
#22
reduce transaction fee and miner receive oldest bitcoin Age fee

you mean higher one, right ?Smiley

 for miners this would be good
newbie
Activity: 24
Merit: 0
March 03, 2014, 04:26:00 PM
#21
reduce transaction fee and miner receive oldest bitcoin Age fee
legendary
Activity: 2212
Merit: 1199
March 02, 2014, 06:44:32 PM
#20
Not sure if you are aware that fees will be 1/10th of what they are now as of version 0.9.

Is there an ETA for version 0.9 or will it release 'when it's done'?

Bitcoin 0.9.0rc2 is available for testing so I guess it won't take long anymore.
Perhaps a final version in 2 weeks?

Yes yes Smiley I am already testing it! Works fine @ win7 64bit

there are some problems for Debian 7 user (1 bug was reported)
full member
Activity: 140
Merit: 100
March 02, 2014, 06:13:06 PM
#19
Not sure if you are aware that fees will be 1/10th of what they are now as of version 0.9.

Is there an ETA for version 0.9 or will it release 'when it's done'?

Bitcoin 0.9.0rc2 is available for testing so I guess it won't take long anymore.
Perhaps a final version in 2 weeks?
legendary
Activity: 2212
Merit: 1199
February 28, 2014, 10:13:16 PM
#18
I accidental sent a transaction of 1btc without a fee (blockchain.info don't automatically apply a fee and i didn't know) and it took a few days Tongue

for real?
Few days?

Seems interesting Smiley
newbie
Activity: 14
Merit: 0
February 28, 2014, 01:50:11 PM
#17
I accidental sent a transaction of 1btc without a fee (blockchain.info don't automatically apply a fee and i didn't know) and it took a few days Tongue
full member
Activity: 140
Merit: 100
February 28, 2014, 07:37:59 AM
#16
Not sure if you are aware that fees will be 1/10th of what they are now as of version 0.9.

Is there an ETA for version 0.9 or will it release 'when it's done'?
full member
Activity: 120
Merit: 100
February 28, 2014, 03:58:08 AM
#15
Not sure if you are aware that fees will be 1/10th of what they are now as of version 0.9.
I am aware.

I just think 1/4 is better then 1/10.

It may even encourage bitcoin developers to find ways to reduce the number of bytes checksums and script take up.
legendary
Activity: 1092
Merit: 1016
760930
February 28, 2014, 03:35:23 AM
#14
Not sure if you are aware that fees will be 1/10th of what they are now as of version 0.9.
full member
Activity: 120
Merit: 100
February 28, 2014, 02:59:38 AM
#13
Right now the typical transaction is half a kilobyte or less, correct? And cost is rounded up usually?
Best way to reduce transaction fees is to price it on a per byte basis. There, transactions just got quartered.

how much fees when transfer of bitcoin?  Smiley
right now it's 10k satoshis per kb
what I'm proposing is
10k/1024= 10 satoshis per byte

the typical transaction is a quarter of a kilobyte, so for the typical transaction, it would be reduced by 3/4.
and it would give incentive for more efficient ways of transactions to be made
each byte is very significant since it's going to be stored forever.
and even if people would pay for data to be stored in the block chain, they would have to pay for every byte
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