Topic: where does transaction fees go to (Read 1362 times)
fees in bitcoin go to miners and Gas is part of ethereum.
The transaction fees go to the miners when the solve a block that has a transaction with a fee inside of it. Since fees are typically included with every transaction, all these fees go to whoever found the block.
It helps to weed out priority transaction as well as giving the miners a little bonus for their hashing power.
It helps to weed out priority transaction as well as giving the miners a little bonus for their hashing power.
Thanks for the info, I really always thought that after 21 mio bitcoins no more blocks could be mined.
That brings me to another question:
Has anybody an idea of how high the fees are that are earned for mining one block in average?
That brings me to another question:
Has anybody an idea of how high the fees are that are earned for mining one block in average?
It varies. Bitcoin blocks have a limit of 1MB and the transaction fee recommendation goes around the 0.0005~0.0009 per KB range. 1 MB is roughly 1000KB and majority of the blocks are full so it's 0.5~0.9 per block (0.7 average I guess?).
There's also this chart which shows total transaction fees each day. The number of blocks generated each day is 144 average.
Once all the bitcoins are mined in 2140, it's usual that newbies question where will be the transactions fees go at... well it will continue the same as it is now, but the miners will only get the fees, they will not get the generated coins. There is an ongoing discussion about how by 2140 there will not be enough incentive for miners to keep mining because of that... I would like to know more.
question: how do you want to give the miner a fee for mining, when all the blocks are already mined?
Mining means putting a transaction in a new block where it stays forever. The first miner who does that earns the fee and 12.5 btc at the moment.
From all I understand about the way bitcoin works, I must assume the following thing: after all blocks are mined, bitcoin is kind of dead.
Or am I wrong there?
You are wrong.
He did not say all the "blocks" we're mined, but all the Bitcoins, by which he means that all 21 million bitcoins will have been generated. Blocks will continue to be created, one every 10 minutes, in order that transactions can continue to be made and confirmed and the network will continue.
The difference is that there will be no coinbase reward of new Bitcoins, instead miners will earn only the transaction fees.
(This all assumes that Bitcoin actually lasts 'til then of course.)
Thanks for the info, I really always thought that after 21 mio bitcoins no more blocks could be mined.
That brings me to another question:
Has anybody an idea of how high the fees are that are earned for mining one block in average?
I don't mind paying a small fee for transactions if it supports miners and therefore keeps the bitcoin engine running. Plus the fees are very small.
Exactly, this is too small as we can compare to paypal or western union.Imagine if you send million dollars you only pay 1 dollars or less for the fee.
If miners want to remain profitable in the future when the block reward will be too small, either the price of Bitcoin should grow exponentially or the number of transactions per block should increase dramatically since only the fees paid will be the major source of income for miners. In fact, these two possibilities naturally follow from the expansion of the Bitcoin usage across the world should it occur. But if the price is set to grow multifold, so will the fees in fiat terms, for example, in dollars...
Therefore, one day the Bitcoin fees might start looking not so attractive as they are now in comparison to fiat payment systems
Fees goes to the miners...
I have other question: can we know how much everyblock "collect" from fees and give to miners? What's the value comparated with the block reward?
You can check this site, https://bitcoinfees.21.co/ as mentioned out there the fastest and cheapest transaction fee is currently 60 satoshis/byte, however you can adjust the fee higher than that in order to get fastest confirmation.I have other question: can we know how much everyblock "collect" from fees and give to miners? What's the value comparated with the block reward?
I don't mind paying a small fee for transactions if it supports miners and therefore keeps the bitcoin engine running. Plus the fees are very small.
Exactly, this is too small as we can compare to paypal or western union.Imagine if you send million dollars you only pay 1 dollars or less for the fee.
Fees goes to the miners...
I have other question: can we know how much everyblock "collect" from fees and give to miners? What's the value comparated with the block reward?
I have other question: can we know how much everyblock "collect" from fees and give to miners? What's the value comparated with the block reward?
The transaction fee is processed by and received by the bitcoin miner. When a new bitcoin block is generated with a successful hash, the information for all of the transactions is included with the block and all transaction fees are collected by that user creating the block, who is free to assign those fees to himself.
Transaction fees are voluntary on the part of the person making the bitcoin transaction, as the person attempting to make a transaction can include any fee or none at all in the transaction. On the other hand, nobody mining new bitcoins necessarily needs to accept the transactions and include them in the new block being created. The transaction fee is therefore an incentive on the part of the bitcoin user to make sure that a particular transaction will get included into the next block which is generated.
It is envisioned that over time the cumulative effect of collecting transaction fees will allow somebody creating new blocks to "earn" more bitcoins than will be mined from new bitcoins created by the new block itself. This is also an incentive to keep trying to create new blocks even if the value of the newly created block from the mining activity is zero in the far future.
Traditionally, the sender pays the full Bitcoin network fee; deducting the fee from the amount received by the recipient will often be considered an incomplete payment.
source : https://en.bitcoin.it/wiki/Transaction_fees
Transaction fees are voluntary on the part of the person making the bitcoin transaction, as the person attempting to make a transaction can include any fee or none at all in the transaction. On the other hand, nobody mining new bitcoins necessarily needs to accept the transactions and include them in the new block being created. The transaction fee is therefore an incentive on the part of the bitcoin user to make sure that a particular transaction will get included into the next block which is generated.
It is envisioned that over time the cumulative effect of collecting transaction fees will allow somebody creating new blocks to "earn" more bitcoins than will be mined from new bitcoins created by the new block itself. This is also an incentive to keep trying to create new blocks even if the value of the newly created block from the mining activity is zero in the far future.
Traditionally, the sender pays the full Bitcoin network fee; deducting the fee from the amount received by the recipient will often be considered an incomplete payment.
source : https://en.bitcoin.it/wiki/Transaction_fees
The amount remaining when the value of all outputs in a transaction are subtracted from all inputs in a transaction; the fee is paid to the miner who includes that transaction in a block.Miners need an incentive to pay for electronic and hardware cost, Right now, miners are paid through a combination of Bitcoin’s block reward and transaction fees.
Bitcoin’s block reward is still large and provides the majority of miners earnings
The transaction fee is processed by and received by the bitcoin miner. When a new bitcoin block is generated with a successful hash, the information for all of the transactions is included with the block and all transaction fees are collected by that user creating the block, who is free to assign those fees to himself.
Transaction fees are voluntary on the part of the person making the bitcoin transaction, as the person attempting to make a transaction can include any fee or none at all in the transaction. On the other hand, nobody mining new bitcoins necessarily needs to accept the transactions and include them in the new block being created. The transaction fee is therefore an incentive on the part of the bitcoin user to make sure that a particular transaction will get included into the next block which is generated.
It is envisioned that over time the cumulative effect of collecting transaction fees will allow somebody creating new blocks to "earn" more bitcoins than will be mined from new bitcoins created by the new block itself. This is also an incentive to keep trying to create new blocks even if the value of the newly created block from the mining activity is zero in the far future.
Traditionally, the sender pays the full Bitcoin network fee; deducting the fee from the amount received by the recipient will often be considered an incomplete payment.
source : https://en.bitcoin.it/wiki/Transaction_fees
Transaction fees are voluntary on the part of the person making the bitcoin transaction, as the person attempting to make a transaction can include any fee or none at all in the transaction. On the other hand, nobody mining new bitcoins necessarily needs to accept the transactions and include them in the new block being created. The transaction fee is therefore an incentive on the part of the bitcoin user to make sure that a particular transaction will get included into the next block which is generated.
It is envisioned that over time the cumulative effect of collecting transaction fees will allow somebody creating new blocks to "earn" more bitcoins than will be mined from new bitcoins created by the new block itself. This is also an incentive to keep trying to create new blocks even if the value of the newly created block from the mining activity is zero in the far future.
Traditionally, the sender pays the full Bitcoin network fee; deducting the fee from the amount received by the recipient will often be considered an incomplete payment.
source : https://en.bitcoin.it/wiki/Transaction_fees
The transaction fee that you pay for every transaction made goes to each of the nodes in the Bitcoin network. In other words, it becomes the block reward for miners. The higher you pay, the higher chance that a node would get confirm it.
I don't mind paying a small fee for transactions if it supports miners and therefore keeps the bitcoin engine running. Plus the fees are very small.
I'm very interested to see what happens when all rewards are found and the only thing miners earn is transaction fees.
Will fees have to be increased?
Will miners shut off hardware? How much hash rate would be lost? How much will difficulty be adjusted?
If anyone has good info on this topic I would appreciate it being shared. It's one aspect I don't hear discussed much.
Will fees have to be increased?
Will miners shut off hardware? How much hash rate would be lost? How much will difficulty be adjusted?
If anyone has good info on this topic I would appreciate it being shared. It's one aspect I don't hear discussed much.
The hash power will be used to mine alt-coins, to make profit with that, but there are some interesting doubts without answer.
Will the fees increase? That is an issue... Bitcoin users don't like to pay high fees, and I hope it doesn't be increased when this time comes.
I'm very interested to see what happens when all rewards are found and the only thing miners earn is transaction fees.
Will fees have to be increased?
Will miners shut off hardware? How much hash rate would be lost? How much will difficulty be adjusted?
If anyone has good info on this topic I would appreciate it being shared. It's one aspect I don't hear discussed much.
Will fees have to be increased?
Will miners shut off hardware? How much hash rate would be lost? How much will difficulty be adjusted?
If anyone has good info on this topic I would appreciate it being shared. It's one aspect I don't hear discussed much.
i thought a big part of bitcoin is that theres no fees whatsoever, but I have realized theres a transaction fee section on my blockchain wallet. Also, I have heard people saying they can put more "gas fee" to make the transaction confirmed faster. How does that work?
thanks
Transaction fees are small fees given to miners which act as a partial additional fund the miners take along with a system that prevents spam attacks on the network, meaning that it costs money to attack the network with overwhelming transaction volumes.thanks
It also gives the miners a reason to prioritize the transaction, making it be confirmed faster.
Once all the bitcoins are mined in 2140, it's usual that newbies question where will be the transactions fees go at... well it will continue the same as it is now, but the miners will only get the fees, they will not get the generated coins. There is an ongoing discussion about how by 2140 there will not be enough incentive for miners to keep mining because of that... I would like to know more.
There are a few factors which could help miners remain profitable by the time when the future halvings bring the rewards to nothing. First, if Bitcoin price increases manyfold, the miners profits may actually increase in fiat terms even despite the reward being halved with each halving iteration. This is exactly what happened with this year halving. Miners reward dropped from 25 down to 12.5 bitcoins, but since the Bitcoin price increased more than three times within the period of just one year, 12.5 bitcoins now cost more in dollars than 25 bitcoins were worth over a year ago. And second, if Bitcoin gets worldwide traction and its userbase expands exponentially, the number of transactions processed will increase in similar manner. Since miners earn on almost every transaction they include in the block they find, the fees they get may also grow dramatically, thereby totally offsetting the lack of mining rewards...
As you can see, it all primarily depends on two factors, i.e. Bitcoin price and Bitcoin adoption
It is sort of both - only one "entity" can be the first to mine a block, but many individual miners can work together in pools, appearing to the network like one large miner; when a pool mines a block the rewards are awarded to the pool and then shared amongst the miners who contributed work to the pool.
Simple to the miners, they are the ones that confirm your transaction and again you can send your BTC without putting transaction fee but the likelihood that the transaction would be delayed is very high so to encourage the miners to move your transaction you need to incentives them
Fees + block reward goes to miners, fees are designed to keep bitcoin mining profitable even when no any new bitcoin will be mined in future.
Fees in terms of bitcoin will keep on changing with respect to price of bitcoin, block reward as well as cost of mining. Different miners set different fee per byte of transaction and you can look at what fee/byte is recommended to make any transaction get confirmed within next block here https://bitcoinfees.21.co/
Fees in terms of bitcoin will keep on changing with respect to price of bitcoin, block reward as well as cost of mining. Different miners set different fee per byte of transaction and you can look at what fee/byte is recommended to make any transaction get confirmed within next block here https://bitcoinfees.21.co/
Once all the bitcoins are mined in 2140, it's usual that newbies question where will be the transactions fees go at... well it will continue the same as it is now, but the miners will only get the fees, they will not get the generated coins. There is an ongoing discussion about how by 2140 there will not be enough incentive for miners to keep mining because of that... I would like to know more.
There are a few factors which could help miners remain profitable by the time when the future halvings bring the rewards to nothing. First, if Bitcoin price increases manyfold, the miners profits may actually increase in fiat terms even despite the reward being halved with each halving iteration. This is exactly what happened with this year halving. Miners reward dropped from 25 down to 12.5 bitcoins, but since the Bitcoin price increased more than three times within the period of just one year, 12.5 bitcoins now cost more in dollars than 25 bitcoins were worth over a year ago. And second, if Bitcoin gets worldwide traction and its userbase expands exponentially, the number of transactions processed will increase in similar manner. Since miners earn on almost every transaction they include in the block they find, the fees they get may also grow dramatically, thereby totally offsetting the lack of mining rewards...
As you can see, it all primarily depends on two factors, i.e. Bitcoin price and Bitcoin adoption
It is sort of both - only one "entity" can be the first to mine a block, but many individual miners can work together in pools, appearing to the network like one large miner; when a pool mines a block the rewards are awarded to the pool and then shared amongst the miners who contributed work to the pool.
Just like what others have explained, the fees go to the miners.
This is one of the reasons why some miners do not want the block size to increase so soon- the most crowded the blocks, the higher the fee because people will need to pay more if they want their transactions to be accepted sooner.
This is one of the reasons why some miners do not want the block size to increase so soon- the most crowded the blocks, the higher the fee because people will need to pay more if they want their transactions to be accepted sooner.
Yup exaclt it's a fees for miners and charges would be great to their pocket and in every halving time price and mining blocks use to reduce by half and by the way it's not possible to increase it.
Once all the bitcoins are mined in 2140, it's usual that newbies question where will be the transactions fees go at... well it will continue the same as it is now, but the miners will only get the fees, they will not get the generated coins. There is an ongoing discussion about how by 2140 there will not be enough incentive for miners to keep mining because of that... I would like to know more.
There are a few factors which could help miners remain profitable by the time when the future halvings bring the rewards to nothing. First, if Bitcoin price increases manyfold, the miners profits may actually increase in fiat terms even despite the reward being halved with each halving iteration. This is exactly what happened with this year halving. Miners reward dropped from 25 down to 12.5 bitcoins, but since the Bitcoin price increased more than three times within the period of just one year, 12.5 bitcoins now cost more in dollars than 25 bitcoins were worth over a year ago. And second, if Bitcoin gets worldwide traction and its userbase expands exponentially, the number of transactions processed will increase in similar manner. Since miners earn on almost every transaction they include in the block they find, the fees they get may also grow dramatically, thereby totally offsetting the lack of mining rewards...
As you can see, it all primarily depends on two factors, i.e. Bitcoin price and Bitcoin adoption
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