Bitcoin transaction fees, how can we quickly confirm the arrival of Bitcoin?

The price of Bitcoin has been rising steadily recently, and now it has exceeded 4700. As the price rises, transactions on the chain have also become active. Many people complain that they cannot confirm the arrival of their funds in about 10 minutes as advertised by Bitcoin. In fact, as long as the transaction fee is sufficient, it will be confirmed in time. The Bitcoin block is just full, and it has never been blocked. What is needed now is to introduce the knowledge of transaction fees to everyone in a comprehensive way.

1. What is the handling fee?  

Please note that this is not the transaction fee of the trading platform (mostly free). Rather, it is the fee that needs to be paid when sending and receiving coins on the blockchain between coin addresses.

Transaction fee: the difference between the total amount of input coins and the total amount of output coins in the transaction

2. How much handling fee is appropriate?

The handling fee is entirely determined by the user, so how much should it be paid? Answer: The higher the amount of transaction data, the faster the confirmation.

First of all, we need to know the data volume of each transaction, which is the first "size" in the above figure. It has little to do with the amount of coins in the transaction, but is related to the number of inputs and outputs. This figure shows a two-to-two transaction, which shows a size of 450Bytes. In fact, most ordinary transactions are generally one-to-two transactions (one input, one payment output, and one change output), which are generally 226 Bytes in size. Some many-to-many transactions may have a large data volume. For example, the one with a 200BTC handling fee above is 2011 Bytes, which is about 2KB, with 11 inputs and 11 outputs. You know why it is so large. In fact, there are many larger many-to-many transactions.

The handling fee is used to reward miners to thank them for packaging, so the handling fee is sometimes also called the miner's fee. Whether the handling fee is enough or not depends on whether it is enough to attract miners to package your transaction into the block first.

Take a look at the historical transaction fees since its inception:

The above figure shows the total transaction fees received each month. In September 2016, a total of about 1,805 BTC in transaction fees were received, which is higher than the peak of 1,720 BTC in March 2013. It is expected that it will likely exceed 2,000 BTC in October.

The following figure shows the miner fee divided by the block size, in BTC/KB, which means the fee for a transaction with a data volume of 1KB. We will be surprised to find that the current BTC/KB is actually at a historically low level. For example, in September 2016, it was only 0.00053984 BTC/KB, while in November 2013, it was 0.00120669 BTC/KB, and the historical high was 0.00733384 BTC/KB in May 2011. Those who say that Bitcoin's current fee is too high should take a good look at the fee history, and if they say that the price of the currency was low in the early days, they can look at 2013. On the contrary, 2014, when the fee was very low, corresponds to the bear market of Bitcoin.

How much handling fee is appropriate?

https://btc.com/stats/unconfirmed-tx

https://bitcoinfees.21.co/

Miner fees are generally packaged by sorting transactions roughly according to "BTC/KB". If the transactions are strictly sorted by "BTC/KB", the miner fee will be the highest. Currently, a block can have a total fee income of about 1BTC. Of course, some miners will also consider the time factor and package some transactions that are not ranked very high in "BTC/KB" but have been waiting for a long time (these miners are sacrificing their interests to contribute to the cryptocurrency circle, but they are a minority).
According to the latest data charts on the two websites, 0.0009 BTC/KB is sufficient for 1 confirmation in a timely manner.
Then determine the amount of your transaction data. If you do not manually build many-to-many transactions, as shown in the figure below, there will generally be more one-to-two transactions. In this case, the size is generally 226 Bytes.

Fee = transaction data volume × current recommended value <br/>Then multiply the transaction data size obtained based on the several-to-several transactions by the recommended values ​​queried from the above two websites to get the fee that can be confirmed in time. The current one-to-two transaction is 226 Bytes multiplied by 0.0009 BTC/KB, which is about 0.2mBTC. If your transaction is urgent, you can pay 0.3mBTC. If it is not urgent, you can continue to pay 0.1mBTC, but be prepared for a long delay before confirmation. In addition, if your transaction is a many-to-many transaction, you need to calculate it specifically. You cannot just pay 0.2mBTC, which may not be enough.

3. How to pay the handling fee?

From a practical point of view, how should we pay enough handling fees to confirm the transaction in a timely manner?

The first step is to ask yourself whether this on-chain transaction needs urgent confirmation. In fact, some transactions of withdrawing coins from the fanzhong platform for cold storage, some transactions of rewarding coins, some transactions of remittances to children studying abroad, etc. do not need to be confirmed very quickly. Even a few hours or even a day or two later is not a big problem.
First determine whether it is a transaction that needs to be confirmed in a timely manner, and then consider how to set a reasonable fee to quickly confirm it.
Method 1: Core Wallet Settings <br/>Click the selection button behind the handling fee, and then select Custom Fee

Method 2: Choose a good mobile wallet <br/>that can automatically adjust to the best transaction fee, such as Bitpie.
In fact, it is expected that in the future there will be more and more wallets that can automatically adjust transaction fees.

Method 3: Brain Password Tool <br/> Setting the fee and constructing the transaction by yourself has a certain technical threshold. Please remember to set the change address. The red Bitcoin Genesis transaction in the screenshot above was published by constructing a transaction using the Brain Password Tool.

4. Summary

The transaction fee on the Bitcoin chain is floating and arbitrary. There is no restriction on the coin consensus protocol level. You can pay more or less at will. As long as there are enough transaction fees, they can be confirmed in time. The so-called "blocked" coin transactions are mostly because the transaction fees are not paid enough. Miners give priority to packing for those who pay more transaction fees. These people are better off waiting for kind miners. If it is urgent, you can consider using the RBF function to add transaction fees to speed up confirmation. There is a calculation method for how much transaction fee needs to be paid for normal and timely confirmation. First check the data on the two websites, and then multiply it by the size of the data you are trading. In addition, there are more and more easy-to-use wallet tools that can determine the best transaction fee for timely confirmation.
Some people complain that the transaction fee is a bit expensive and hope that it can be free. Here is a sentence for these people: "Free is often the most expensive." Dogecoin is cheap, with a transaction fee of only 1Doge per transaction, but it is still not free. Now WeChat Pay and Alipay withdrawals have partially charged 0.1% and are no longer completely free.

(This article is published on the "Bite Jiang" public account at the same time. Thank you for watching. If there are any mistakes, please leave a message to point them out. If you find it useful, please forward and reward it for support.)

Author: Ma Long (Mayacndx)
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