Earn 1% more by mining with replace-by-fee

[Peter Todd]

tl;dr: Mine with Replace-by-Fee v0.9.1 and you'll earn 1% more per block found, or 0.25BTC.

I'm running an experiment right now with replace-by-fee. Basically I'm doing continuously testing it, such that at any one time the extra fees from the test represents about 1% of the block reward. A site considering using the "scorched earth" defense to make accepting zeroconf transactions safer wanted me to get an idea of how willing miners would be to upgrade - I figured 1% would be an interesting starting point.

You'll need to compile and run the above tree. It's based on the v0.9.1 release with one small patch. Other replace-by-fee peers are automatically found on the network - you don't need to add replace-by-fee peers explicitly for it to work.

As for what this is all about, replace-by-fee simply means that rather than only accepting the first transaction you see to your mempool, you accept whatever one pays the most fees. It's a simple rule that results in the most profit per block, lets users re-issue transactions with higher fees if needed, and makes it clear to everyone that relying on unconfirmed transactions by themselves is insecure rather than giving people a false sense of security. Most importantly it ensures people use Bitcoin in a secure way, relying on crypto and incentives rather than relying on trust, which will help keep Bitcoin mining free of regulation and decentralized.

More info:

Why you should mine with replace-by-fee

Double-spending unconfirmed transactions is a lot easier than most people realize

[Harley997]

tl;dr: Mine with Replace-by-Fee v0.9.1 and you'll earn 1% more per block found, or 0.25BTC.

I'm running an experiment right now with replace-by-fee. Basically I'm doing continuously testing it, such that at any one time the extra fees from the test represents about 1% of the block reward. A site considering using the "scorched earth" defense to make accepting zeroconf transactions safer wanted me to get an idea of how willing miners would be to upgrade - I figured 1% would be an interesting starting point.

You'll need to compile and run the above tree. It's based on the v0.9.1 release with one small patch. Other replace-by-fee peers are automatically found on the network - you don't need to add replace-by-fee peers explicitly for it to work.

As for what this is all about, replace-by-fee simply means that rather than only accepting the first transaction you see to your mempool, you accept whatever one pays the most fees. It's a simple rule that results in the most profit per block, lets users re-issue transactions with higher fees if needed, and makes it clear to everyone that relying on unconfirmed transactions by themselves is insecure rather than giving people a false sense of security. Most importantly it ensures people use Bitcoin in a secure way, relying on crypto and incentives rather than relying on trust, which will help keep Bitcoin mining free of regulation and decentralized.

More info:

Why you should mine with replace-by-fee

Double-spending unconfirmed transactions is a lot easier than most people realize

You are essentially facilitating double spending attacks. Miners will not want to participate as it will degrade confidence in the network, and the price of bitcoin. Over the useful life of a miner it will make a miner less profitable in terms of fiat.

[dexX7]

Do you have any up-to-date usage stats about replace-by-fee this?

How would that work, if I were a miner and wanted to claim the 1 %? Edit: sorry, or were you saying: you gain 1 % more, if you mine with replace-by-fee?