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Title: Whats the fee for? Post by: Organized on December 27, 2010, 04:28:51 PM Hi
I use bitcoin since ~20 minutes and I am generating coins (nothing yet, but I think they will come). In the options there is a fee of 0.01 recommended. I read the FAQ and found no answer, so: whats this fee for? If I have a fee of 0.01 and I send 100 BTC to someone else, does the one who generates the block of the transaction get 1 BTC (100 * 0.01)? Is my idea right? Best Regards Organized Title: Re: Whats the fee for? Post by: kiba on December 27, 2010, 04:56:54 PM You will probably never generate a bitcoin unless you joined a pooled mining effort.
Even so, you will find it 50 times easier to simply sell goods and services for bitcoin. Very few people can mine profitably, anyway. Title: Re: Whats the fee for? Post by: Cryptoman on December 27, 2010, 05:06:51 PM I use bitcoin since ~20 minutes and I am generating coins (nothing yet, but I think they will come). In the options there is a fee of 0.01 recommended. I read the FAQ and found no answer, so: whats this fee for? The fee is an "incentive" to process your transaction. At this time, your transaction will almost certainly get processed without a fee. However, in the future, as returns from generating decline, transaction fees will be a important component of node compensation. A 0.01 BTC fee is a straight fee, not a percentage.If I have a fee of 0.01 and I send 100 BTC to someone else, does the one who generates the block of the transaction get 1 BTC (100 * 0.01)? Is my idea right? Title: Re: Whats the fee for? Post by: ribuck on December 27, 2010, 06:06:16 PM Woo hoo! I just generated and won my first fee, all of 0.02 BTC. Feels good, though.
Title: Re: Whats the fee for? Post by: theymos on December 27, 2010, 08:09:31 PM A 0.01 BTC fee is a straight fee, not a percentage. It's per kilobyte of transaction size. Title: Re: Whats the fee for? Post by: ShadowOfHarbringer on December 27, 2010, 08:47:24 PM A 0.01 BTC fee is a straight fee, not a percentage. It's per kilobyte of transaction size. Yeah but i wonder why does it say that transaction size is 1K if currently one transaction takes averagely ~275 bytes of storage ? Does it take more bandwidth than storage or what ? Title: Re: Whats the fee for? Post by: Anonymous on December 28, 2010, 01:30:54 AM I feel like a communist if I dont contribute so I include a tx fee with every payment.
It helps support the network and makes me feel less like a socialist lol. Title: Re: Whats the fee for? Post by: jgarzik on December 28, 2010, 01:38:46 AM Yeah but i wonder why does it say that transaction size is 1K if currently one transaction takes averagely ~275 bytes of storage ? Does it take more bandwidth than storage or what ? Don't read it too literally. The fee is per kilobyte, but that does not dictate or say anything about transaction size. The actual formula is Code: nBytes = number of bytes in your transaction (e.g. 259 bytes or whatever) So, nMinFee==0.01 for small transactions. Title: Re: Whats the fee for? Post by: Cryptoman on December 28, 2010, 03:36:23 AM So you're saying that it's an integer division and therefore all transactions less than 1K are free? What affects transaction size, and what causes it to go over 1K?
Title: Re: Whats the fee for? Post by: theymos on December 28, 2010, 03:58:44 AM The minimum fee is 0.01, and increases for larger transactions.
For a 999-byte transaction: nMinFee = (1 + 999 / 1000) * CENT nMinFee = (1+0) * CENT nMinFee = 0.01 BTC For a 1000-byte transaction: nMinFee = (1 + 1000 / 1000) * CENT nMinFee = (1 + 1) * CENT nMinFee = 0.02 BTC The UI text should say that most transactions are under 1K and would therefore need a fee of 0.01. What affects transaction size, and what causes it to go over 1K? Number of inputs, mostly. Compare the sizes (shown on each page) of these two transactions: http://blockexplorer.com/tx/19573c608543d95b193ebaf0de2c0c4fd299732f878233f6ea5b5c15a9bf85ff http://blockexplorer.com/tx/b13bc77ca994479bb8fdc69d9e119163c8d41773cc148c9f82fcb67f78f3d108 |