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Author Topic: Who receives the Bitcoin transaction fee and how does it technically work?  (Read 442 times)
TwitchySeal
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February 07, 2020, 02:30:03 PM
Merited by game-protect (3)
 #21

Where is the fee I pay (when sending BTC) stored until the miner possibly gets it?

You might say it's stored within your unconfirmed transaction, which is probably sitting in the mempool of various miners. Until the transaction is actually confirmed on the blockchain, the fee hasn't really been paid.
Even after my BTC transaction is confirmed by miners the blockchain does not show to what BTC address the fee went!

Find the block number that the transaction was included in => Find who mined that block => Find their address (it will receive the block reward of BTC12.5 + fees.

For example:

Here's the tx that h4ns sent the $210 you scammed : https://www.blockchain.com/btc/tx/88cea5e9935103e173e25483c1db298ab8ae7d9fa12e5572788134bb2cdb3c3f

It was included in block 573956: https://www.blockchain.com/btc/block/573956

Which was mined by BTCTOP (they don't always have a name), and they received BTC13.09600094 (BTC12.5 block reward + BTC0.596000939 in fees) which was sent to 1Hz96kJKF2HLPGY15JWLB5m9qGNxvt8tHJ in this tx: https://www.blockchain.com/btc/tx/c0d4ecea9d3005a2cb27e139c940624a9e583661e94a75a3ba5b336f5c4e4a74

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game-protect (OP)
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February 07, 2020, 04:19:59 PM
Last edit: February 07, 2020, 05:11:37 PM by game-protect
 #22

Great explanation Twitchy!

Now the only unclear thing is the relay fees / nodes?

If the miners confirm the transactions in blocks, for what are the nodes necessary?
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February 07, 2020, 11:27:50 PM
Merited by ABCbits (1)
 #23

Great explanation Twitchy!

Now the only unclear thing is the relay fees / nodes?

If the miners confirm the transactions in blocks, for what are the nodes necessary?

Connectivity, resilience and verification.

If only mining pools where to run nodes they could be relatively easily isolated from the rest of the network, be it by accident (e.g. large to mid-scale network outages) or by malicious intent (e.g. DDoS attacks, governmental interference). One effect of this would be a higher orphan rate (ie. miners forking of the main chain by accident), leading to (1) decreased security due to less effective usage of hashing power and (2) decreased reliability of confirmations due to higher risk of chain splits and reorgs. Especially the latter has significant practical implications since low confirmation transactions would be prone to "disappear". Also, bluntly speaking, it's easier to block a few dozen servers rather than a few thousands.

Apart from why the network profits from having as many nodes as possible it's more secure to run a node of your own if you process a lot of transactions (eg. as a merchant, payment provider or currency exchange). Rather than having to trust a third party on what they say what the blockchain looks like, look for yourself. Or as the old adage goes: Don't trust, verify.

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game-protect (OP)
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February 09, 2020, 03:20:27 PM
 #24

What is the minimum relay fee and who receives it and how?

What is the difference between miners and nodes?
Lafu
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February 09, 2020, 05:41:41 PM
 #25

Maybe you should try to do some research by yourself , Google will help you on that !  Cheesy

Miner fees :

Quote
Every Bitcoin transaction spends zero or more bitcoins to zero or more recipients. The difference between the amount being spent and the amount being received is the transaction fee (which must be zero or more).

Bitcoin's design makes it easy and efficient for the spender to specify how much fee to pay, whereas it would be harder and less efficient for the recipient to specify the fee, so by custom the spender is almost always solely responsible for paying all necessary Bitcoin transaction fees.

When a miner creates a block proposal, the miner is entitled to specify where all the fees paid by the transactions in that block proposal should be sent. If the proposal results in a valid block that becomes a part of the best block chain, the fee income will be sent to the specified recipient

Source : https://en.bitcoin.it/wiki/Miner_fees

What is the difference between miners and nodes?

There is already a thread about that:
https://bitcointalk.org/index.php?topic=1734235.0

Also you can read that here :

Quote
A full node is a complete copy of the blockchain and is able to verify all transactions since the beginning. This requires about 140GB of drive space (currently).

A pruning node is one that has verified all prior transactions; however, it has deleted all blocks below a certain space requirement, but still has a copy of the UXTO set. It's almost useless to the community, but takes less resources on the computer (can be under 1GB of drive space).

A miner on the other hand creates blocks in the blockchain which the nodes keep. Basically, the miner works on transactions by coming up with the best combination (hash) to store that information. Miners spend about 10 minutes working on a problem, but nodes keep that result forever after in the database and verify it with others. Miners don't need to know about prior blocks (except for the prior one) with very few exceptions.
Source : https://bitcoin.stackexchange.com/questions/59220/what-is-the-difference-between-a-miner-and-a-full-node

Just google it and maybe you should do more research on the Basics for Bitcoin and related things to it !

mu_enrico
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February 09, 2020, 07:27:36 PM
Merited by HeRetiK (1)
 #26

Oh come on guys! You got jebaited by game-protect. She was just trolling to get her signature and avatar displayed in this section.

@GP before you ask, kindly open and read this faq https://bitcoin.org/en/faq

It should save everyone's time.

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February 11, 2020, 03:13:52 AM
 #27

I have a question about this mining thing. All bitcoin generated from mining goes to coinbase exchange and from there are distributed to pools and miners?
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February 11, 2020, 06:17:49 AM
 #28

fee's are given to miners in the network, as payment they are given to them by the number of hashing power they have so the more miners you have you recieved more payment than those who have less miner,
to understand more here is the link below hope this helps
https://www.bitcoinmining.com/bitcoin-mining-fees/

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February 11, 2020, 07:28:28 AM
 #29

I have a question about this mining thing. All bitcoin generated from mining goes to coinbase exchange and from there are distributed to pools and miners?
Coinbase Exchange has nothing to do with it (the exchange’s name is probably based on what follows, but that’s all).

Each Bitcoin block contains a first transaction that is used to claim the block reward from mining and transaction fees. That TX is called the Coinbase Transaction, where the input is a sole blank input known as Coinbase.
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February 11, 2020, 08:30:58 AM
 #30

Who receives this fee and how does it technically work?

I think this thread gives you a better idea about how a Bitcoin transaction fee technically works - Bitcoin Transaction Fees - Everything in one by @hd49728. You can refer to this article to understand better.

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