![]() ![]() In the case of Bitcoin, pending transactions are sent to a memory pool (mempool) where they wait to be picked by miners and included in the next block. In short, fees are determined by the complexity of the transaction and the congestion on the network. How are transaction fee determined for Bitcoin and Ethereum? This keeps miners motivated and secures the legitimacy of the transactions. With every block (collection of transactions) that is added to the blockchain, miners are rewarded with a bounty and the transaction fees that were included in the block. The work of validating transactions and adding them to the blockchain requires lots of computing power and energy. Hard to make thousands of micro transactions if they all cost money.Įven more importantly, fees incentivize miners to do the work of adding transactions to the blockchain quickly and accurately. Initially, transaction fees were intended to deter malicious actors from overloading the network. There are two reasons that transaction fees exist on blockchains like Bitcoin and Ethereum. Why do fees exist on Bitcoin and Ethereum?įees were initially introduced as an anti-spam tool, but they turned into one of the most essential attributes of a blockchain. In an effort to make this comparison, this is not a discussion about whether Bitcoin or Ethereum should be used as a means of value transfer, I am purely looking at what does happen when you make a transaction now. Nevertheless, with all the congestion on both Bitcoin and Ethereum, I thought it would be interesting to do a side-by-side comparison of why fees exist and what the average fees currently look like to give the recent fee hikes a little perspective. ![]() Spoiler: Moving money through banks is not free. ![]() This was followed, by implying that high transaction fees were a barrier to entry for new enthusiasts. One of the questions and complaints I got was why would someone invest in a currency that had such high fees when you could move money through banks for free. r/CryptoCurrencyMemes r/CryptoCurrency_Tech r/CryptoMarkets r/CryptoRecruiting r/Best_of_Crypto r/BitcoinMarkets r/BitcoinMining r/CryptoTrade r/Ethfinance r/EthTrader r/Jobs4Crypto r/Liberland r/NFT r/OpenBazaar r/GPUminingĪ few days ago I posted a description of the Ethereum transaction fee structure over at r/EthTrader. Mastering Ethereum (Open Source book) Exchanges IBM's ZeroToBlockchain (Free learning resources) See our Expanded Rules page for more detailsĬoinMarketCap (Cryptocurrency market cap info)ġ0k.pizza (Portfolio tracking.See our Expanded Rules page for more details about this rule.This includes "PM for referral", asking for referral codes or links, and linking to sites used solely for referral links. Rule #2.10 - Posting referral, promo links, or codes of any kind is strictly prohibited and will be met with a long-term or permanent ban.See our Expanded Rules wiki page for more details about this rule.If you meet our requirements and want custom flair, click here. ![]() Please make quality contributions and follow the rules for posting. This subreddit is intended for open discussions on all subjects related to emerging crypto-currencies or crypto-assets. Be nice to each other! r/CryptoCurrency is a welcoming place for all people and all cryptocurrencies. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |