Who earns the transaction fees? | Bitcointalksearch.org

nc50lc

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Quote from: Asiska02 on May 12, 2022, 07:57:21 AM

-snip-
I am not using it to store funds. I only came across it when I was reading and was curious to know where the transaction fee goes to and it was written there as optional. What if one doesn’t include any transaction fee since it is optional, but thanks to @Hyphen(-), I know why it is written as optional now.

It is only optional in the image because it's a very old screenshot when Bitcoin transactions with 0 transaction fee were standard.
More info: https://en.bitcoin.it/wiki/Miner_fees#Priority_transactions
But now, although still valid, it's "non-standard" so mostly all nodes wont relay a tx without fee and miners will most likely reject it.

Quote from: Asiska02 on May 12, 2022, 07:57:21 AM

Quote from: nc50lc on May 12, 2022, 05:20:37 AM

Can you help with this as well or anyone:

The target is just a number stored in the each block header and as you know it,
a miner who'll generate a hash of their candidate block's block header that's lower than the target will be able to include their block to the blockchain.

Target adjusts in every 2016 blocks which is roughly 2 weeks, the adjustment is based from how fast or slow the previous 2016 blocks were mined.
More info: learnmeabitcoin.com - How is the target calculated?
(you can use the search bar of the link above if you want to know more about Bitcoin)

o_e_l_e_o

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Quote from: Asiska02 on May 12, 2022, 08:53:32 AM

It means the miners goes for the transaction with higher fee to mine first before going for the ones with lower fee if am not wrong.

Usually yes. Each block has a limited amount of space, so it makes sense for miners to prioritize the transactions paying the highest fee rate so they can maximize their own profits.

Quote from: Asiska02 on May 12, 2022, 08:53:32 AM

Please I still need clarity on the target for a miner to find when attempting to mine a block into the blockchain. Where does this comes into play, where is it used?

First miners construct a candidate block, by picking all the transactions they want to try to include in their block, and then including some other data such as the previous block hash, the timestamp, and some other bits and pieces. They then perform a double SHA256 hash on the header of their block. If the output of that double hash isn't below the target, then they change something about their block (usually a field called the nonce or the extraNonce) and try again. They repeat this over and over (billions and billions of times each second) until they stumble across a result which is below the target. Once they find a configuration in which the output of the double hash is below the target, then their block is added to the blockchain.

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Quote from: Asiska02 on May 12, 2022, 08:53:32 AM

Thanks for clarifying it. It means the miners goes for the transaction with higher fee to mine first before going for the ones with lower fee if am not wrong.

Actually, miners will prioritize transactions which have higher fee rate (expressed in sat/vb) not higher fee. For example, if there are two transactions A and B:
transaction A pays 400 sats and its size is 200 vb (2 sat/vb)
transaction b pays 1000 sats and its size is 1000 vb (1 sat/vb)
Miners will prioritize transaction A and include it first in their blocks because it pays higher fee rate.
This might not always be the case depending on other factors, but miners will always prioritize transactions which will generate more profit.

Quote

Please I still need clarity on the target for a miner to find when attempting to mine a block into the blockchain. Where does this comes into play, where is it used?

This may answer your question:
https://en.bitcoin.it/wiki/Difficulty

Asiska02

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Quote from: o_e_l_e_o on May 12, 2022, 08:18:22 AM

You are confusing two different concepts. The fee you pay for a transaction and the target for a miner to find when attempting to mine a block are too entirely separate things and are not directly related in any way. If your transaction is not selected to be included in the next block because its fee rate is too low, then it simply remains in the mempool for another miner to pick up in a subsequent block. Which block this happens to be depends on the fee rate of all the other transactions in the mempool.

Thanks for clarifying it. It means the miners goes for the transaction with higher fee to mine first before going for the ones with lower fee if am not wrong.

Please I still need clarity on the target for a miner to find when attempting to mine a block into the blockchain. Where does this comes into play, where is it used?

o_e_l_e_o

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Quote from: ?? on ??

What if one doesn’t include any transaction fee since it is optional

It used to be optional - it isn't really anymore. While it is still possible to make a transaction with no fee, you either have to mine it yourself or privately convince a miner to mine it for you. In reality, every transaction you make will include a fee, and if you don't include a fee then the network will not relay your transaction to other nodes.

Quote from: ?? on ??

Can you help with this as well or anyone:

You are confusing two different concepts. The fee you pay for a transaction and the target for a miner to find when attempting to mine a block are too entirely separate things and are not directly related in any way. If your transaction is not selected to be included in the next block because its fee rate is too low, then it simply remains in the mempool for another miner to pick up in a subsequent block. Which block this happens to be depends on the fee rate of all the other transactions in the mempool.

Asiska02

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Quote from: nc50lc on May 12, 2022, 05:20:37 AM

Quote from: Asiska02 on May 12, 2022, 03:06:10 AM

-snip-
If this transaction is successful and been mined into the blockchain, who earns the fees that was used in this transaction?

Haven't you "get it" already in your previous thread where they mentioned that the reward is the block reward + transaction fee?
This: How miners gets rewards for their efforts after successfully mining a block.

I am getting it more better now, I conflicted them both. I thought it was entirely different from what I asked earlier since the previous question was about after successfully mining a block while this does not has to do with that but only sending bitcoin to a new address.

Quote from: OmegaStarScream on May 12, 2022, 03:41:18 AM

Quote from: Asiska02 on May 12, 2022, 03:17:53 AM

This is mobile bitcoin wallet, transferring bitcoin to a new wallet.

What is it called? It doesn't make sense to charge you 0.0005 BTC or even make the fees optional unless it's a custodial wallet/exchange in which case, I wouldn't recommend using it to store your funds.

I am not using it to store funds. I only came across it when I was reading and was curious to know where the transaction fee goes to and it was written there as optional. What if one doesn’t include any transaction fee since it is optional, but thanks to @Hyphen(-), I know why it is written as optional now.

Quote from: nc50lc on May 12, 2022, 05:20:37 AM

Can you help with this as well or anyone:

During transactions, the transaction fees is included to determine how fast your transaction will be added to the blockchain or processed very fast. The process of mining a block which already has a block header has to go through the SHA-256 hash function, the result has to be below the current target in order to successfully add it onto the blockchain.

After have added a transaction fee to my transaction to make it faster and my transaction wasn’t added to the blockchain because the result was lower than the current target, won’t that be sad. Or am I missing out on something on how it works.
Please I need clarity on how this works...Thanks.

nc50lc

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Quote from: Asiska02 on May 12, 2022, 03:06:10 AM

-snip-
If this transaction is successful and been mined into the blockchain, who earns the fees that was used in this transaction?

Haven't you "get it" already in your previous thread where they mentioned that the reward is the block reward + transaction fee?
This: How miners gets rewards for their efforts after successfully mining a block.

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Quote from: OmegaStarScream on May 12, 2022, 03:41:18 AM

Quote from: Asiska02 on May 12, 2022, 03:17:53 AM

This is mobile bitcoin wallet, transferring bitcoin to a new wallet.

What is it called?

It's screenshot of very old version of blockchain.info (today it's called blockchain.com) wallet.

Source: https://www.pinterest.com/pin/570127634048048045/

Quote from: OmegaStarScream on May 12, 2022, 03:41:18 AM

It doesn't make sense to charge you 0.0005 BTC or even make the fees optional unless it's a custodial wallet/exchange in which case, I wouldn't recommend using it to store your funds.

0.0005BTC isn't that high for 10 years ago.

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Quote from: Asiska02 on May 12, 2022, 03:06:10 AM

The transaction fees that will be charged for this transaction shows BTC0.0005.

Good wallets show the fee in sat/vByte. The fee only makes sense in relation with the size of transaction. Any wallet that doesn't do that is doing it wrong and you should drop it.

Quote from: Asiska02 on May 12, 2022, 03:06:10 AM

If this transaction is sent, it can only be included into the blockchain when a miner picks it up and add it to the blockchain at an average of 10minute.

Yes. Then the number of confirmations start to grow. Any transaction that is not confirmed was not mined and you cannot know if it will ever get mined.

Quote from: Asiska02 on May 12, 2022, 03:06:10 AM

Does the fees for this transaction comes from the sender?

Yes.

Quote from: Asiska02 on May 12, 2022, 03:06:10 AM

If this transaction is successful and been mined into the blockchain, who earns the fees that was used in this transaction?

If it's a normal wallet, then the miners.
If it's an exchange or custodian wallet service, then part of the fee may actually remain in the hands of the service and only the (usually lower) fee you'll see on a blockchain explorer when you look out that transaction will go into miners' hands.

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Quote from: Asiska02 on May 12, 2022, 03:06:10 AM

Does the fees for this transaction comes from the sender?
If this transaction is successful and been mined into the blockchain, who earns the fees that was used in this transaction?

Yes transaction fee comes from the sender to aid the transaction, sometimes the higher fee you paid the faster your transaction, when you pay high transaction fee, the miners process your transaction faster, so that means that the Miners get the transaction fee as their reward.

OmegaStarScream

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Quote from: Asiska02 on May 12, 2022, 03:17:53 AM

This is mobile bitcoin wallet, transferring bitcoin to a new wallet.

What is it called? It doesn't make sense to charge you 0.0005 BTC or even make the fees optional unless it's a custodial wallet/exchange in which case, I wouldn't recommend using it to store your funds.

Asiska02

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Quote from: OmegaStarScream on May 12, 2022, 03:09:28 AM

It's the sender who pays for the fees, and they go to the miners.

Which service is this though? I could be wrong but if they're saying that the fee is "optional" this could be some kind of donation to the service you're using and not meant to pay for the network fees.

This is mobile bitcoin wallet, transferring bitcoin to a new wallet.

OmegaStarScream

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It's the sender who pays for the fees, and they go to the miners.

Which service is this though? I could be wrong but if they're saying that the fee is "optional" this could be some kind of donation to the service you're using and not meant to pay for the network fees.

Asiska02

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The transaction fees that will be charged for this transaction shows BTC0.0005.
If this transaction is sent, it can only be included into the blockchain when a miner picks it up and add it to the blockchain at an average of 10minute.
Does the fees for this transaction comes from the sender?
If this transaction is successful and been mined into the blockchain, who earns the fees that was used in this transaction?

Topic: Who earns the transaction fees? (Read 205 times)