Cheaper fees?

[mexicantarget]

Hey there,

I recently launched a microwallet service.

I was wondering,

a) what's the easiest way to lower sending fees to multiple addresses?
b) Is lighting network going to reduce tx fees? If yes, how?
c) Give me as many links possible please

Thanks a bunch and apologies if those questions have been answered in another 10 topics.

[shorena]

Hey there,

I recently launched a microwallet service.

I was wondering,

a) what's the easiest way to lower sending fees to multiple addresses?

Reduce the size in bytes as much as possible.

#1 use as little inputs as possible (e.g. one)
#2 use as much outputs per transaction as possible, spreading them over multiple transactions requires you to use at least one input each time. Inputs are larger in size than outputs.

b) Is lighting network going to reduce tx fees? If yes, how?

Depends, do you expect a large number of transactions going back and forth between you and your users?

c) Give me as many links possible please

Thanks a bunch and apologies if those questions have been answered in another 10 topics.

Links? Like any?

https://anduck.net/bitcoin/fees/

[mexicantarget]

Hey there,

I recently launched a microwallet service.

I was wondering,

a) what's the easiest way to lower sending fees to multiple addresses?

Reduce the size in bytes as much as possible.

#1 use as little inputs as possible (e.g. one)
#2 use as much outputs per transaction as possible, spreading them over multiple transactions requires you to use at least one input each time. Inputs are larger in size than outputs.

b) Is lighting network going to reduce tx fees? If yes, how?

Depends, do you expect a large number of transactions going back and forth between you and your users?

c) Give me as many links possible please

Thanks a bunch and apologies if those questions have been answered in another 10 topics.

Links? Like any?

https://anduck.net/bitcoin/fees/

Regarding point b.

I'm expecting a lot of withdraws. Deposits wont be more than 1% of total withdraws, since only faucet owners will be able to deposits funds on the platform.

I'm doing everything you've mentioned in your post. Just need to make sure I'm not missing any other things which could help.

Thanks for the link, gonna dive into it right now

[shorena]

Hey there,

I recently launched a microwallet service.

I was wondering,

a) what's the easiest way to lower sending fees to multiple addresses?

Reduce the size in bytes as much as possible.

#1 use as little inputs as possible (e.g. one)
#2 use as much outputs per transaction as possible, spreading them over multiple transactions requires you to use at least one input each time. Inputs are larger in size than outputs.

b) Is lighting network going to reduce tx fees? If yes, how?

Depends, do you expect a large number of transactions going back and forth between you and your users?

c) Give me as many links possible please

Thanks a bunch and apologies if those questions have been answered in another 10 topics.

Links? Like any?

https://anduck.net/bitcoin/fees/

Regarding point b.

I'm expecting a lot of withdraws. Deposits wont be more than 1% of total withdraws, since only faucet owners will be able to deposits funds on the platform.

In that case I wouldnt expect much from lightning network. IMHO the best simple way for this scenario would be to reduce the number of withdrawals, e.g. by setting a relativly high minimum (0.001 or even 0.01). This also helps faucet users as they often have to pay high fees when trying to spend the coins from a faucet. On the other hand users will want to withdraw early, so maybe allow it optionally, but issue a warning that this might increase the relative fees they(!) have to pay in the future when trying to spend these coins. I wrote a bit about that here as you might[1] already know

I'm doing everything you've mentioned in your post. Just need to make sure I'm not missing any other things which could help.

Thanks for the link, gonna dive into it right now

Its one of the sites that give you an estimate what a proper fee currently is (also for the past in this case). As you can see it varies and during certain times blocks are filled 50% with transactions that pay 20-30 sat/byte. It might be difficult to analyse this algorithmically, but it would give you an edge by doing withdrawals during times when the network is least used.

[1] https://bitcointalk.org/index.php?topic=1044399.0

[franky1]

if expecting alot of withdrawals.
dont send a tx per user request. send it out as batches. EG once every 30 minutes as a single tx going out to many customers. ofcourse highlight to customers that withdrawals may take upto an hour (allowing 30minute confirmation wiggle room)


note: 'bytes' might vary +-10 in calculations
note: cost/byte set at an old 'high' as a onetime worse case scenario demo. but you atleast see the difference singular v batching does
i displayed this old spreadsheet to demonstrate cost / withdrawl =0.00003085(batched) as oppose to 0.00070200(singular)

as for LN
LN is not about depositing funds into you and withdrawing out to not use you again.
LN is for those that want to deposit in.. and then agree on who gets what amount of deposited funds over time internally. and settleup/withdraw later
(repeat trades by having pre-paid bartab instead of buying each item separately)
think of it like a joint bank account.
you and wife put funds in. then away from the bank agree on who owes who what each minute, hour, day, week, whenever
then at end of the month X goes to her Y goes to you when you both go to the ATM. saving you having to go to the bank each day to withdraw

so its like an orderbook away from the network. if customers are always depositing 0.001 a day.. and withdrawing 0.00x
then you can tell them use LN deposit 0.03 to cover a month. set the lock for a month. and you can both adjust who owes what each day internally

and at the end of the month submit 1 tx for 0.0x to them and 0.0x to you. as one tx a month instead of 30tx a month.

as for customers that only use you once, ever.. forget it LN has no advantage