Well, I agree with you that it's probably unnecessary at the moment, because the miners still receive a block reward, and the commission just upgrades their reward.
But anyway, we should be prepared for the time that there won't be any block reward and then the only reward that miners will get is the commissions.
At the moment commission is just for setting what is the priority of your transaction, if you set up a high fee, your transaction is most likely to be included in the next block, but if it's a low priority transaction then you can just set it to be a low fee transaction.
Topic: Why do we need commissions and who receives them? (Read 239 times)
Transfers can be even with a transaction that is made when you receive money from another
cards without notifications can not do without admins.
cards without notifications can not do without admins.
Instead of ask questions on this forum better read a couple of articles on Medium for example. Don't need to ask something that you can google.
Any transfers can even be with the transaction that are made when you receive money from another card, but here is the same system.
What happened to Bitcoin? When Bitcoin just appeared there were no commissions. Without commission, Bitcoin would have been better than fiat money. Because of commissions, you can not use Bitcoin when buying everyday goods. Where did the commissions come from? For confirmation of the transaction, miners without commission receive Bitcoins. Why do we need commissions and who receives them?
Where did you get that info? because this is a total lie, at the very beginning Bitcoin transactions are not free, and all those transaction fees will have to go to miners. Mining Bitcoin requires some resources this is why miners should be rewarded by transaction fees and reward blocks, if transactions are free,I doubt that there are anyone that will have an interest to mine it. Bitcoin would been better than fiat if there is are no commission? lol. When transacting fiat using banks is that free? of course no, and it is way more expensive to transact with fiat than transacting Bitcoin. Transacting Bitcoin is very cheap right now so why do you have to complain about it?
Mining is required for the existence of Bitcoin. So I think a little fee is valid if it goes for mining. Imagine Bitcoin without mining! And I don’t think users are being affected largely by this.
The commissions/fees were always there as far as i can tell but the difference was that you had the option to also send a transaction with zero fee and have it mined. as the number of transactions grew and miners got more greedy this option started fading away until it was removed from the biggest used bitcoin client called bitcoin core which effectively killed this off. It is not the reason why bitcoin is better than fiat! The main reason for that are being decentralized not having no fee.
If you are talking about the transaction fees, it goes to people mining bitcoins. A lot of money is invested for mining equipment and the fees is justified for it.
What happened to Bitcoin? When Bitcoin just appeared there were no commissions. Without commission, Bitcoin would have been better than fiat money. Because of commissions, you can not use Bitcoin when buying everyday goods. Where did the commissions come from? For confirmation of the transaction, miners without commission receive Bitcoins. Why do we need commissions and who receives them?
Are you talking about the fees? The transaction fees? Well, if it is, it is just simple. You are using their trading site to convert your bitcoin or some coins you have. As a consideration to this process, they deduct some amount to your trading. Why? Because you used their trading site. Without them, you cannot convert your coins. This fees will be mined but is not for free, they invested for their mining set so we cannot tell that it is free.No. About fees miners. About the stock exchanges are all clear.
the commissions/fees were always there as far as i can tell but the difference was that you had the option to also send a transaction with zero fee and have it mined. as the number of transactions grew and miners got more greedy this option started fading away until it was removed from the biggest used bitcoin client called bitcoin core which effectively killed this off.
it is not the reason why bitcoin is better than fiat! the main reason for that are being decentralized not having no fee.
and fees are there to basically do two things:
1. prevent spam attacks where someone can easily fill the blocks with 0 fee transactions if there were no incentive. but with fees if you spam you will have to continuously pay higher fees.
2. to cover the cost of mining. but this is not the incentive for many years, basically when block reward is halved multiple times to a point where it is so low it can not cover the cost of mining. so the total fees in a block covers that. which answers the other part of your question, miners receive these transaction fees.
it is not the reason why bitcoin is better than fiat! the main reason for that are being decentralized not having no fee.
and fees are there to basically do two things:
1. prevent spam attacks where someone can easily fill the blocks with 0 fee transactions if there were no incentive. but with fees if you spam you will have to continuously pay higher fees.
2. to cover the cost of mining. but this is not the incentive for many years, basically when block reward is halved multiple times to a point where it is so low it can not cover the cost of mining. so the total fees in a block covers that. which answers the other part of your question, miners receive these transaction fees.
Bitcoin was born with the following benefits:
1. Decentralization.
2. Free transfers.
After 10 years of bitcoin's life, changes occurred. Today, free transactions are a myth. It follows that there is no decentralization. The miners raised the commission in December 2017, the miners lowered the commission in March 2018. If Bitcoin is independent, how did they do it?
Free transactions?
Satoshi introduced "miners fees" because he knew "Block rewards" will be halved and at some time these "Block rewards" will not be enough to motivate people to mine.
The idea is that a increase in transactions would increase the "Miners fees" and once the "Block reward" expires, there will be enough incentive from the large amounts of transactions being done, to replace the "Block reward"
Can you see why it is necessary?
Bitcoin was born with the following benefits:
2. Free transfers.
show me where it says "free" transactions? https://bitcoin.org/bitcoin.pdf2. Free transfers.
Quote
free transactions are a myth. It follows that there is no decentralization.
there is no relationship between the two!Quote
The miners raised the commission in December 2017, the miners lowered the commission in March 2018. If Bitcoin is independent, how did they do it?
the miners are not the ones setting the transaction fees, the users are and that is decentralization. all users can decide to only send transactions with 0 fee or all of them can decide to outbid each other when blocks are full and raise the fees. so far the are doing the later. What happened to Bitcoin? When Bitcoin just appeared there were no commissions. Without commission, Bitcoin would have been better than fiat money. Because of commissions, you can not use Bitcoin when buying everyday goods. Where did the commissions come from? For confirmation of the transaction, miners without commission receive Bitcoins. Why do we need commissions and who receives them?
Your so called commission, mostly known as transaction fees are necessary and it was your payment. For example, you applied in a company that gives you income, in exchange, you will give atleast 10% of your income. Just like Uber. Partners are using their app, they got the daily income, in exchange, 35% of your income comes to the company because you are using their app so that you can earn. Come to think of that when it comes to bitcoin, it is like the same.Miners receive Bitcoins from mining. If the miners do not take a commission for transactions, they will still earn. But if there are no commissions, then it will be possible to exchange Bitcoin for bread. Then Bitcoin will win.
People often claim that with Bitcoin "you can send money between any two points on earth for free". While that is true in some cases, sometimes a transaction fee is required. The fee, when it is required, is usually worth a few dollars.
The fees go to the miners to incentivise them to keep mining, which in turn keeps the Bitcoin network secure. They already get a reward of 12.5 XBT for each block they mine, but this reward halves every 4 years. The plan is that as the block reward diminishes over the time, it will be replaced by transaction fees.
So what decides when you have to pay, and how much?
Well, like everything else in Bitcoin, the fee structure is built into the network rules, which are defined as "what the reference client does". When you attempt to send coins using bitcoin core (the current reference client), it goes through the following steps:
1. PICK WHICH COINS TO SPEND
The client has to decide which of your coins to use to make up the payment amount. Each time you receive a payment, the payment goes into your wallet and stays there until you spend it.
If you receive a payment of 2 XBT and another of 3 XBT, you'll have 2 new amounts in your wallet, of 2 XBT and 3 XBT. They don't "merge" into a single 5 XBT coin. Over time you'll build up a collection of differently sized amounts in your wallet, and the client needs to decide which ones make the best fit for the amount you're trying to spend.
These amounts are known as the "inputs" of your new transaction, and the amounts you are sending (including any change that gets sent back to your own wallet) are known as the "outputs".
2. DISCOURAGE "DUST" SPAM
If any of the outputs (including any change) of your transaction are less than 0.01 XBT, then a fee of 0.0001 XBT is required. The coin selection algorithm is careful to avoid selecting coins that result in a change amount of less than 0.01 XBT if at all possible.
3. PRIORITIZE OLD AND HIGH-VALUE COINS
If the coins you're spending are too small or too new then your transaction won't qualify as free. Each transaction is assigned a priority, determined by the age, size, and number of its inputs.
Bitcoin Transaction Fees
Specifically, for each input, the client calculates the value of the input in XBT multiplied by the age of the input in blocks. It sums these products over all inputs and divides the total by the size of the transaction in bytes. If this gives a number less than 0.576 then the transaction requires a fee. This means that you can include lots of very small, and/or very new inputs in a transaction and have it require no fees at all so long as you include a large old input along with them; it is the average value-times-age that matters.
If step 3 caused a transaction to require a fee when it was originally sent, it's possible that as time passes, and new blocks are found, the transaction's inputs will age, its priority will increase, and as a result step 3 may no longer cause it to require a fee.
4. CHARGE PER KILOBYTE
Finally, the client checks the size of the transaction in bytes. The size depends on the numbers of inputs and outputs, and is roughly:
148 * number_of_inputs + 34 * number_of_outputs + 10
If this size is less than 10,000 bytes and step 3 found that the transaction's priority was high enough to qualify as free, then the transaction still qualifies as free, otherwise a fee is required. The fee is charged per 1000 bytes or part thereof. The amount charged per 1000 bytes defaults to 0.0001 XBT, but can be increased in the Settings>Options>Main tab of the client. If you set the "fee per kB" to less than 0.0001 XBT in that dialog then a value of 0.0001 XBT will be used. When it applies, this fee per kB replaces any fee from step 2, rather than adding to it.
All these rules are visible in the reference client's source code. See CTransaction::GetMinFee() in src/main.cpp, AllowFree() in src/main.h, and CWallet::CreateTransaction() in src/wallet.cpp.
Examples
1. WHEN TOO MUCH IS NOT ENOUGH...
Suppose you have only two outputs in your wallet, worth 1 XBT and 2 XBT. You want to buy something for 2.999 XBT. The coin selection code has no choice; it has to select both coins to get a big enough total to make the transaction. That means the change will be 0.001 XBT, which triggers the 0.0001 XBT fee for having an output that's less than 0.01 XBT. As a result your transaction will fail, because the amount you're sending plus the fee is more than you have.
What this means is that there's no way of spending 2.999 XBT when you have 3 XBT. You could send the full 3 XBT to the vendor without a fee (assuming the outputs are sufficiently old to satisfy step 3), but some vendors ask you to send the exact amount they specify.
2. THE BIG DICE WINNER
Once, someone got lucky and turned 0.02 XBT into 1280 XBT on a 64000x payout bet on a bitcoin 'dice' game! When the site paid out the winnings they didn't have a single 1280 XBT input lying around in their wallet. Instead what they had was a whole bunch of various sized outputs from other players' losing bets, as well as a lot of change from paying other winners.
The transaction the site created to pay the winner of this jackpot used so many inputs that it ended up being 51,203 bytes long. Being over 10000 bytes, this required a fee of 0.0005 XBT per 1000 bytes or part thereof (prior to being changed to 0.0001, the fee used to be 0.0005), so the required fee was 52 * 0.0005 = 0.026 XBT. That's more than the player bet in the first place. Who says Bitcoin transactions are free!
Of course, this is still less than you would pay in fees if you used PayPal to transfer $40,000.
Note that the dice game actually included a fee of 0.0286 XBT, which is more than is required. That's probably because they don't use the standard satoshi client to create their transactions, and the client they used got it slightly wrong.
3. PUSHING THE LIMIT
This transaction just barely qualified as being free. It's 9999 bytes long, which is the biggest a transaction can be without requiring a fee. Notice also that all but one of the inputs are only 10 nXBT (0.00000001 XBT); the single large input that was included with them was big enough to bring its priority up enough to make it free.
ARE "REQUIRED" FEES REALLY REQUIRED?
Incidentally, the concept of "required fee" isn't strictly enforced. Some miners don't follow the rules about what fees are required, and will include a transaction in their blocks even if it doesn't follow the fee rules. Using the "raw transactions" interface of the reference client it's possible to create transactions with less than the required amount of fee. Such transactions may eventually be included in a block by a maverick miner who doesn't enforce the fee rules, although this could take 24 hours or even much longer.
Are bitcoin fees required?
So it's all pretty complex, but hopefully this gives you a better understanding of how and why the client decides when and how much to charge you.
MORE USEFUL BITCOIN RESOURCES SOURCE:
https://coinjolt.com/bitcoin-a-digital-store-value-for-wealth/
The fees go to the miners to incentivise them to keep mining, which in turn keeps the Bitcoin network secure. They already get a reward of 12.5 XBT for each block they mine, but this reward halves every 4 years. The plan is that as the block reward diminishes over the time, it will be replaced by transaction fees.
So what decides when you have to pay, and how much?
Well, like everything else in Bitcoin, the fee structure is built into the network rules, which are defined as "what the reference client does". When you attempt to send coins using bitcoin core (the current reference client), it goes through the following steps:
1. PICK WHICH COINS TO SPEND
The client has to decide which of your coins to use to make up the payment amount. Each time you receive a payment, the payment goes into your wallet and stays there until you spend it.
If you receive a payment of 2 XBT and another of 3 XBT, you'll have 2 new amounts in your wallet, of 2 XBT and 3 XBT. They don't "merge" into a single 5 XBT coin. Over time you'll build up a collection of differently sized amounts in your wallet, and the client needs to decide which ones make the best fit for the amount you're trying to spend.
These amounts are known as the "inputs" of your new transaction, and the amounts you are sending (including any change that gets sent back to your own wallet) are known as the "outputs".
2. DISCOURAGE "DUST" SPAM
If any of the outputs (including any change) of your transaction are less than 0.01 XBT, then a fee of 0.0001 XBT is required. The coin selection algorithm is careful to avoid selecting coins that result in a change amount of less than 0.01 XBT if at all possible.
3. PRIORITIZE OLD AND HIGH-VALUE COINS
If the coins you're spending are too small or too new then your transaction won't qualify as free. Each transaction is assigned a priority, determined by the age, size, and number of its inputs.
Bitcoin Transaction Fees
Specifically, for each input, the client calculates the value of the input in XBT multiplied by the age of the input in blocks. It sums these products over all inputs and divides the total by the size of the transaction in bytes. If this gives a number less than 0.576 then the transaction requires a fee. This means that you can include lots of very small, and/or very new inputs in a transaction and have it require no fees at all so long as you include a large old input along with them; it is the average value-times-age that matters.
If step 3 caused a transaction to require a fee when it was originally sent, it's possible that as time passes, and new blocks are found, the transaction's inputs will age, its priority will increase, and as a result step 3 may no longer cause it to require a fee.
4. CHARGE PER KILOBYTE
Finally, the client checks the size of the transaction in bytes. The size depends on the numbers of inputs and outputs, and is roughly:
148 * number_of_inputs + 34 * number_of_outputs + 10
If this size is less than 10,000 bytes and step 3 found that the transaction's priority was high enough to qualify as free, then the transaction still qualifies as free, otherwise a fee is required. The fee is charged per 1000 bytes or part thereof. The amount charged per 1000 bytes defaults to 0.0001 XBT, but can be increased in the Settings>Options>Main tab of the client. If you set the "fee per kB" to less than 0.0001 XBT in that dialog then a value of 0.0001 XBT will be used. When it applies, this fee per kB replaces any fee from step 2, rather than adding to it.
All these rules are visible in the reference client's source code. See CTransaction::GetMinFee() in src/main.cpp, AllowFree() in src/main.h, and CWallet::CreateTransaction() in src/wallet.cpp.
Examples
1. WHEN TOO MUCH IS NOT ENOUGH...
Suppose you have only two outputs in your wallet, worth 1 XBT and 2 XBT. You want to buy something for 2.999 XBT. The coin selection code has no choice; it has to select both coins to get a big enough total to make the transaction. That means the change will be 0.001 XBT, which triggers the 0.0001 XBT fee for having an output that's less than 0.01 XBT. As a result your transaction will fail, because the amount you're sending plus the fee is more than you have.
What this means is that there's no way of spending 2.999 XBT when you have 3 XBT. You could send the full 3 XBT to the vendor without a fee (assuming the outputs are sufficiently old to satisfy step 3), but some vendors ask you to send the exact amount they specify.
2. THE BIG DICE WINNER
Once, someone got lucky and turned 0.02 XBT into 1280 XBT on a 64000x payout bet on a bitcoin 'dice' game! When the site paid out the winnings they didn't have a single 1280 XBT input lying around in their wallet. Instead what they had was a whole bunch of various sized outputs from other players' losing bets, as well as a lot of change from paying other winners.
The transaction the site created to pay the winner of this jackpot used so many inputs that it ended up being 51,203 bytes long. Being over 10000 bytes, this required a fee of 0.0005 XBT per 1000 bytes or part thereof (prior to being changed to 0.0001, the fee used to be 0.0005), so the required fee was 52 * 0.0005 = 0.026 XBT. That's more than the player bet in the first place. Who says Bitcoin transactions are free!
Of course, this is still less than you would pay in fees if you used PayPal to transfer $40,000.
Note that the dice game actually included a fee of 0.0286 XBT, which is more than is required. That's probably because they don't use the standard satoshi client to create their transactions, and the client they used got it slightly wrong.
3. PUSHING THE LIMIT
This transaction just barely qualified as being free. It's 9999 bytes long, which is the biggest a transaction can be without requiring a fee. Notice also that all but one of the inputs are only 10 nXBT (0.00000001 XBT); the single large input that was included with them was big enough to bring its priority up enough to make it free.
ARE "REQUIRED" FEES REALLY REQUIRED?
Incidentally, the concept of "required fee" isn't strictly enforced. Some miners don't follow the rules about what fees are required, and will include a transaction in their blocks even if it doesn't follow the fee rules. Using the "raw transactions" interface of the reference client it's possible to create transactions with less than the required amount of fee. Such transactions may eventually be included in a block by a maverick miner who doesn't enforce the fee rules, although this could take 24 hours or even much longer.
Are bitcoin fees required?
So it's all pretty complex, but hopefully this gives you a better understanding of how and why the client decides when and how much to charge you.
MORE USEFUL BITCOIN RESOURCES SOURCE:
https://coinjolt.com/bitcoin-a-digital-store-value-for-wealth/
What happened to Bitcoin? When Bitcoin just appeared there were no commissions. Without commission, Bitcoin would have been better than fiat money. Because of commissions, you can not use Bitcoin when buying everyday goods. Where did the commissions come from? For confirmation of the transaction, miners without commission receive Bitcoins. Why do we need commissions and who receives them?
Are you talking about the fees? The transaction fees? Well, if it is, it is just simple. You are using their trading site to convert your bitcoin or some coins you have. As a consideration to this process, they deduct some amount to your trading. Why? Because you used their trading site. Without them, you cannot convert your coins. This fees will be mined but is not for free, they invested for their mining set so we cannot tell that it is free. What happened to Bitcoin? When Bitcoin just appeared there were no commissions. Without commission, Bitcoin would have been better than fiat money. Because of commissions, you can not use Bitcoin when buying everyday goods. Where did the commissions come from? For confirmation of the transaction, miners without commission receive Bitcoins. Why do we need commissions and who receives them?
Your so called commission, mostly known as transaction fees are necessary and it was your payment. For example, you applied in a company that gives you income, in exchange, you will give atleast 10% of your income. Just like Uber. Partners are using their app, they got the daily income, in exchange, 35% of your income comes to the company because you are using their app so that you can earn. Come to think of that when it comes to bitcoin, it is like the same. 
Yes, we need committees and bitcoin recipients. Like in Japan, a big company was established for bitcoin and bitcoin was strictly managed. This is a paid personal currency network. There should be people who accept payment instead of cash. Taking cash is risky, and when we trade, the online trade may be stolen, so we need a bitcoin company.
the commissions/fees were always there as far as i can tell but the difference was that you had the option to also send a transaction with zero fee and have it mined. as the number of transactions grew and miners got more greedy this option started fading away until it was removed from the biggest used bitcoin client called bitcoin core which effectively killed this off.
it is not the reason why bitcoin is better than fiat! the main reason for that are being decentralized not having no fee.
and fees are there to basically do two things:
1. prevent spam attacks where someone can easily fill the blocks with 0 fee transactions if there were no incentive. but with fees if you spam you will have to continuously pay higher fees.
2. to cover the cost of mining. but this is not the incentive for many years, basically when block reward is halved multiple times to a point where it is so low it can not cover the cost of mining. so the total fees in a block covers that. which answers the other part of your question, miners receive these transaction fees.
it is not the reason why bitcoin is better than fiat! the main reason for that are being decentralized not having no fee.
and fees are there to basically do two things:
1. prevent spam attacks where someone can easily fill the blocks with 0 fee transactions if there were no incentive. but with fees if you spam you will have to continuously pay higher fees.
2. to cover the cost of mining. but this is not the incentive for many years, basically when block reward is halved multiple times to a point where it is so low it can not cover the cost of mining. so the total fees in a block covers that. which answers the other part of your question, miners receive these transaction fees.
Bitcoin was born with the following benefits:
1. Decentralization.
2. Free transfers.
After 10 years of bitcoin's life, changes occurred. Today, free transactions are a myth. It follows that there is no decentralization. The miners raised the commission in December 2017, the miners lowered the commission in March 2018. If Bitcoin is independent, how did they do it?
the commissions/fees were always there as far as i can tell but the difference was that you had the option to also send a transaction with zero fee and have it mined. as the number of transactions grew and miners got more greedy this option started fading away until it was removed from the biggest used bitcoin client called bitcoin core which effectively killed this off.
it is not the reason why bitcoin is better than fiat! the main reason for that are being decentralized not having no fee.
and fees are there to basically do two things:
1. prevent spam attacks where someone can easily fill the blocks with 0 fee transactions if there were no incentive. but with fees if you spam you will have to continuously pay higher fees.
2. to cover the cost of mining. but this is not the incentive for many years, basically when block reward is halved multiple times to a point where it is so low it can not cover the cost of mining. so the total fees in a block covers that. which answers the other part of your question, miners receive these transaction fees.
it is not the reason why bitcoin is better than fiat! the main reason for that are being decentralized not having no fee.
and fees are there to basically do two things:
1. prevent spam attacks where someone can easily fill the blocks with 0 fee transactions if there were no incentive. but with fees if you spam you will have to continuously pay higher fees.
2. to cover the cost of mining. but this is not the incentive for many years, basically when block reward is halved multiple times to a point where it is so low it can not cover the cost of mining. so the total fees in a block covers that. which answers the other part of your question, miners receive these transaction fees.
What happened to Bitcoin? When Bitcoin just appeared there were no commissions. Without commission, Bitcoin would have been better than fiat money. Because of commissions, you can not use Bitcoin when buying everyday goods. Where did the commissions come from? For confirmation of the transaction, miners without commission receive Bitcoins. Why do we need commissions and who receives them?
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