Better way to reduce transaction fee

minerva

full member

Activity: 120

Merit: 100

Quote from: Rokund on March 04, 2014, 11:14:51 AM

Quote from: roslinpl on March 04, 2014, 08:29:49 AM

Quote from: Lyomon86 on March 04, 2014, 03:01:16 AM

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.

donsanto

newbie

Activity: 22

Merit: 0

If you do not want to pay a transaction fee why dont you -addnode=192.3.11.20 and relay to Eligius.

jimmyscratchlab

newbie

Activity: 24

Merit: 0

Quote from: jimmyscratchlab on March 03, 2014, 04:26:00 PM

reduce transaction fee and miner receive oldest bitcoin Age fee

https://lh5.googleusercontent.com/-7fEXsT7vK50/UxYayPDRayI/AAAAAAAADsQ/VxgM47RJCEM/w399-h407-no/Bitcoin_ouroboros.png

DeathAndTaxes

donator

Activity: 1218

Merit: 1080

Gerald Davis

Quote from: roslinpl on March 04, 2014, 08:29:49 AM

Quote from: Lyomon86 on March 04, 2014, 03:01:16 AM

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.

flower1024

legendary

Activity: 1428

Merit: 1000

Quote from: Rokund on March 04, 2014, 11:14:51 AM

Quote from: roslinpl on March 04, 2014, 08:29:49 AM

Quote from: Lyomon86 on March 04, 2014, 03:01:16 AM

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

Rokund

newbie

Activity: 16

Merit: 0

Quote from: roslinpl on March 04, 2014, 08:29:49 AM

Quote from: Lyomon86 on March 04, 2014, 03:01:16 AM

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?

piotr_n

legendary

Activity: 2058

Merit: 1416

aka tonikt

of course the fee shall be measured/paid per byte.
doing it per kilobyte is just stupid.

roslinpl

legendary

Activity: 2212

Merit: 1199

Quote from: Lyomon86 on March 04, 2014, 03:01:16 AM

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..

M4v3R

hero member

Activity: 607

Merit: 500

Quote from: roslinpl on March 02, 2014, 06:44:32 PM

Quote from: rmines on March 02, 2014, 06:13:06 PM

Quote from: rmines on February 28, 2014, 07:37:59 AM

Quote from: flatfly on February 28, 2014, 03:35:23 AM

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

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.

Lyomon86

member

Activity: 96

Merit: 10

How will the network operate after all Bitcoins are mined? I have no idea!

roslinpl

legendary

Activity: 2212

Merit: 1199

Quote from: jimmyscratchlab on March 03, 2014, 04:26:00 PM

reduce transaction fee and miner receive oldest bitcoin Age fee

you mean higher one, right ?

for miners this would be good

jimmyscratchlab

newbie

Activity: 24

Merit: 0

reduce transaction fee and miner receive oldest bitcoin Age fee

roslinpl

legendary

Activity: 2212

Merit: 1199

Quote from: rmines on March 02, 2014, 06:13:06 PM

Quote from: rmines on February 28, 2014, 07:37:59 AM

Quote from: flatfly on February 28, 2014, 03:35:23 AM

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

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

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

rmines

full member

Activity: 140

Merit: 100

Quote from: rmines on February 28, 2014, 07:37:59 AM

Quote from: flatfly on February 28, 2014, 03:35:23 AM

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?

roslinpl

legendary

Activity: 2212

Merit: 1199

Quote from: RoboDawg on February 28, 2014, 01:50:11 PM

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

RoboDawg

newbie

Activity: 14

Merit: 0

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

rmines

full member

Activity: 140

Merit: 100

Quote from: flatfly on February 28, 2014, 03:35:23 AM

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'?

minerva

full member

Activity: 120

Merit: 100

Quote from: flatfly on February 28, 2014, 03:35:23 AM

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.

flatfly

legendary

Activity: 1120

Merit: 1016

090930

Not sure if you are aware that fees will be 1/10th of what they are now as of version 0.9.

minerva

full member

Activity: 120

Merit: 100

Quote from: clubminer on February 28, 2014, 12:46:51 AM

Quote from: minerva on February 25, 2014, 04:58:15 PM

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?

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

clubminer

sr. member

Activity: 392

Merit: 250

Let's get rich together

Quote from: minerva on February 25, 2014, 04:58:15 PM

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?

minerva

full member

Activity: 120

Merit: 100

Quote from: roslinpl on February 26, 2014, 07:40:14 PM

Quote from: shaobao88 on February 26, 2014, 01:07:16 AM

Agree with roslinpl as it's faster and the fee is so small that making it 0 and at the same time making the transactions long lasting is worthless

sure it is like this.

0.0001 is very cheap. and we need to remember that those money are needed to support miners.
I know many people who add higher fee to their transactions.

Just find any cheaper way to send money on planet earth?

(and I am not talking about other cryptocurrencies)

transactions fees per block are 90% of the time... chump change
https://blockchain.info/charts/transaction-fees
https://blockchain.info/
https://blockchain.info/block-index/471229/0000000000000000d162a9c8fcd62c5c90517ca177f44752d9fc74b49912e1b1
Block Subsidy: 25 btc
Transaction fees: .17 btc

.17/25.17 = .68% of miner's revenue is from transaction fees
https://blockchain.info/block-index/471233/0000000000000000b2d9570fa137befb3d6bafbeef7b5e47171f0fc553d8c8d5
Block Subsidy: 25 btc
Transaction fees: 0.07 btc

.07/25.07 = .28% of a miner's revenue is from transaction fees

https://blockchain.info/stats
% earned from transaction fees: 0.32%

transaction fees are too small for anyone to pay attention to

besides

the developers are reducing the transaction fee
I don't know why they don't simply increase precision

roslinpl

legendary

Activity: 2212

Merit: 1199

Quote from: shaobao88 on February 26, 2014, 01:07:16 AM

Agree with roslinpl as it's faster and the fee is so small that making it 0 and at the same time making the transactions long lasting is worthless

sure it is like this.

0.0001 is very cheap. and we need to remember that those money are needed to support miners.
I know many people who add higher fee to their transactions.

Just find any cheaper way to send money on planet earth?

(and I am not talking about other cryptocurrencies)

shaobao88

member

Activity: 65

Merit: 10

Agree with roslinpl as it's faster and the fee is so small that making it 0 and at the same time making the transactions long lasting is worthless

roslinpl

legendary

Activity: 2212

Merit: 1199

Quote from: rmines on February 25, 2014, 07:04:02 PM

If you set the fee to 0, the payment will still reach the other party, it might only take days instead of minutes. correct?

Correct - but not 100%

if you will put fee 0 and transaction will be bigger than for example 0.001 it will take few hours, not days...
Anyway transaction will be confirmed then

so you don't need to pay - it is just optional

and make transaction muuuuch faster

and miners more happy!

minerva

full member

Activity: 120

Merit: 100

Quote from: rmines on February 25, 2014, 07:04:02 PM

Quote from: roslinpl on February 25, 2014, 06:06:25 PM

Quote from: minerva on February 25, 2014, 04:58:15 PM

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.

You want to reduce 0001 btc fee? :-)
Come on man ... its cheaper than a box of matches ...
:-)

Why to reduce it?

Anyway you can pay no fee if you like ... qt settings? :-)

If you set the fee to 0, the payment will still reach the other party, it might only take days instead of minutes. correct?

if you set it to zero, you are at the mercy of a generous miner.

rmines

full member

Activity: 140

Merit: 100

Quote from: roslinpl on February 25, 2014, 06:06:25 PM

Quote from: minerva on February 25, 2014, 04:58:15 PM

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.

You want to reduce 0001 btc fee? :-)
Come on man ... its cheaper than a box of matches ...
:-)

Why to reduce it?

Anyway you can pay no fee if you like ... qt settings? :-)

If you set the fee to 0, the payment will still reach the other party, it might only take days instead of minutes. correct?

rapsaodan84

full member

Activity: 218

Merit: 102

I think we all must get used to pay enough fees.

Otherwise, how will the network operate after all Bitcoins are mined?

roslinpl

legendary

Activity: 2212

Merit: 1199

Quote from: minerva on February 25, 2014, 06:20:19 PM

It's true.
But given the recent hubub about developers reducing the default fee, they could easily reduce the fee through increased precision.

perhaps you are right

it's hard to say without testing your option

But idea seems not bad - just guess it will never be implemented into Bitcoin.
(or maybe

- then ask for some donations for idea:P)

minerva

full member

Activity: 120

Merit: 100

It's true.
But given the recent hubub about developers reducing the default fee, they could easily reduce the fee through increased precision.

roslinpl

legendary

Activity: 2212

Merit: 1199

Quote from: minerva on February 25, 2014, 04:58:15 PM

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.

You want to reduce 0001 btc fee? :-)
Come on man ... its cheaper than a box of matches ...
:-)

Why to reduce it?

Anyway you can pay no fee if you like ... qt settings? :-)

minerva

full member

Activity: 120

Merit: 100

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.

Topic: Better way to reduce transaction fee (Read 1996 times)