Organized (OP)
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December 27, 2010, 04:28:51 PM |
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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
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According to NIST and ECRYPT II, the cryptographic algorithms used in
Bitcoin are expected to be strong until at least 2030. (After that, it
will not be too difficult to transition to different algorithms.)
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kiba
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December 27, 2010, 04:56:54 PM |
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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.
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Cryptoman
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December 27, 2010, 05:06:51 PM |
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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?
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.
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"A small body of determined spirits fired by an unquenchable faith in their mission can alter the course of history." --Gandhi
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ribuck
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December 27, 2010, 06:06:16 PM |
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Woo hoo! I just generated and won my first fee, all of 0.02 BTC. Feels good, though.
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theymos
Administrator
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December 27, 2010, 08:09:31 PM |
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A 0.01 BTC fee is a straight fee, not a percentage.
It's per kilobyte of transaction size.
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1NXYoJ5xU91Jp83XfVMHwwTUyZFK64BoAD
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ShadowOfHarbringer
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Bringing Legendary Har® to you since 1952
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December 27, 2010, 08:47:24 PM |
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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 ?
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Anonymous
Guest
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December 28, 2010, 01:30:54 AM |
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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.
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jgarzik
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December 28, 2010, 01:38:46 AM Last edit: December 28, 2010, 04:29:04 AM by jgarzik |
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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 nBytes = number of bytes in your transaction (e.g. 259 bytes or whatever) CENT = 1000000 nMinFee = (1 + nBytes / 1000) * CENT
("CENT" is a multiplier used to convert a fixed-point decimal number, such as 50.44 BTC, into a 64-bit number of "nanocoins", 5044000.) So, nMinFee==0.01 for small transactions.
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Jeff Garzik, Bloq CEO, former bitcoin core dev team; opinions are my own. Visit bloq.com / metronome.io Donations / tip jar: 1BrufViLKnSWtuWGkryPsKsxonV2NQ7Tcj
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Cryptoman
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December 28, 2010, 03:36:23 AM |
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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?
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"A small body of determined spirits fired by an unquenchable faith in their mission can alter the course of history." --Gandhi
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