Author

Topic: explain fees to me, please (Read 484 times)

pysiak

newbie

Activity: 20

Merit: 0

Quote from: DannyHamilton on November 13, 2013, 02:35:47 PM

Quote from: pysiak on November 13, 2013, 02:28:22 PM

So, what's the difference between:
- fees and reward during mining in a pool

Block reward is the sum of the block subsidy (currently 25 BTC) and the transaction fees of all the transactions that are included in the block.

Each pool has their own rules on what they pay to the miners that particpate in the pool. Some share the fees, some don't.

So when I see a reward of 25.24999363, the 0.24999363 is the sum of transaction fees within that block?
Does it then mean the fees in 2040 will be increased so that miners at least make for the electricity?
But then again, how can the miners rely on non-miners to set the fees high enough?

Quote from: pysiak on November 13, 2013, 02:28:22 PM

- having my wallet stored and ran by a bitcoind node

I don't understand the question. Stored where?

I meant I have a server running bitcoind and that installation holds my wallet.dat.

Quote from: DannyHamilton on November 13, 2013, 02:35:47 PM

Quote from: pysiak on November 13, 2013, 02:28:22 PM

On the bitcoind node I ran this:

Code:

bitcoind settxfee 0.0001

When does this fee ever get calculated?

When you use that bitcoind to create a bitcoin transaction to transfer value that you control to some other bitcoin address.

Quote from: pysiak on November 13, 2013, 02:28:22 PM

Also, what is my bitcoind node doing with all its 57 peer connections?

Receiving transactions, making sure they are valid, and then relaying them to peers that don't have them yet.
Receiving blocks, making sure they are valid, adding them to your local copy of the blockchain, and then relaying them to peers that don't have them yet.

Thanks.

DannyHamilton

legendary

Activity: 3472

Merit: 4801

Quote from: pysiak on November 13, 2013, 02:28:22 PM

So, what's the difference between:
- fees and reward during mining in a pool

Quote from: pysiak on November 13, 2013, 02:28:22 PM

- having my wallet stored and ran by a bitcoind node

I don't understand the question. Stored where?

Quote from: pysiak on November 13, 2013, 02:28:22 PM

On the bitcoind node I ran this:

Code:

bitcoind settxfee 0.0001

When does this fee ever get calculated?

When you use that bitcoind to create a bitcoin transaction to transfer value that you control to some other bitcoin address.

Quote from: pysiak on November 13, 2013, 02:28:22 PM

Also, what is my bitcoind node doing with all its 57 peer connections?

pysiak

newbie

Activity: 20

Merit: 0

So, what's the difference between:
- fees and reward during mining in a pool
- having my wallet stored and ran by a bitcoind node

On the bitcoind node I ran this:

Code:

bitcoind settxfee 0.0001

When does this fee ever get calculated?

Also, what is my bitcoind node doing with all its 57 peer connections?

DannyHamilton

legendary

Activity: 3472

Merit: 4801

Quote from: pysiak on November 13, 2013, 02:17:59 PM

Hi, let's say it's 2020, mining with my current ASIC doesn't yield anything, but I supposedly can be rewarded for verifying the blockchain by fees.
How does a transaction (which is not my) get processed through my node and I get a fee?
Or is the fee system only for exchanges and the likes who keep accounts for others?

You don't have to wait until 2020. You are already getting fees when mining (or at least the pool you are using is, depending on the pool it may or may not be sharing those fees with you).

That's what mining is: getting paid for transaction processing and securing the blockchain.

Every block that is solved includes both a subsidy (currently 25 BTC, it will be 12.5 BTC in 2020) and transaction fees of every transaction that is included in the block.

The miner (or mining pool) chooses the addresses that the payment will be sent to before they start mining the block.

fiddelingones

full member

Activity: 127

Merit: 100

Quote from: pysiak on November 13, 2013, 02:17:59 PM

The fees receive only miner who mines new block.

pysiak

newbie

Activity: 20

Merit: 0