Category Archives: transaction fees

How to remove Ethereum pending transaction

Until recently, we thought the Ethereum network was fail-safe as a AK-47 assault rifle. But a few days ago, the machine got stuck. What is the problem? If you send a transaction to the network with a gas price insufficient to make a transaction or execute the code, your transaction will hang out in the status of pending for some long indefinite time. And if your business process depends on this account, then your business can completely stop. What actually happened to us — we wanted to transfer the received investments to our team of traders, but one of the accounts had a transaction on the status of pending for almost a day. We could not sign the withdrawal of funds from multisig purse. By the way, multisig 3of3 is a very bad idea.

fail-safe as a AK-47 assault rifle

We have sent a transaction to the network for Approve withdrawal of funds from the multisig wallet, accidentally a minimum cost per gas of 1 gwei was set. The transaction was sent into the network and hung in the status of Pending. All subsequent transactions for it also hung in the status of pending, regardless of whether the price of gas was set at 21 or even 41 gwei.

In attempts to somehow influence the situation — you generate more new transactions. Such transactions can accumulate 20 or even 100 until the very first problem transaction with the price for gas in 1 Gwei is processed — you will not be able to do anything. Given that the last week the network was overloaded a little more than always:

an unpleasant picture emerges … How much to wait is unknown, you can’t just to call to miners and beg them “please include my transaction in the next block”.

Moreover, if your account is also the Owner of some smartcontract then no action to configure the smartcontract you also can’t do.

But the solution was found!

You need to send a new transaction to the network, indicating that it has the same nonce as the transaction, which caused a congestion. Set the price of gas above, for example 20 Gwei. The transaction may send nothing — that is, you can send 0 Eth.

To do this you need: on the site https://etherscan.io find your “problem” transaction and copy the nonce.

Go to https://www.myetherwallet.com, then go to the Send Offline tab:

Enter your address in the From Address field, any address in the To Address field, Value / Amount to Send, leave 0, Gas price set at 20 gwei — 20000000000 (9 zeros after 20):

Then specify the nonce that you learned on the etherscan, select Keystore File (UTC / JSON), select the file keystore of your account, enter the password and unlock your account with the Unlock button. There will have to wait a little — there is a process of unlocking the account.

Then click on Generate Transaction, and then send the transaction by clicking the Send Transaction button.

That’s all! Let’s look on Ethetscan. Your transactions began to walk.

P.S. If you have sent several transactions with cheap gas to the network, you must repeat it for each of them.

Source: https://www.reddit.com/r/EtherDelta/comments/72tctz/guide_how_to_cancel_a_pending_transaction/

If you have any questions — don’t hesitate to write us at https://t.me/fidcomRu or info@fidcom.net

Join our ICO https://fidcom.net

How to remove Ethereum pending transaction was originally published in Fidcom on Medium, where people are continuing the conversation by highlighting and responding to this story.

How to remove Ethereum pending transaction

Until recently, we thought the Ethereum network was fail-safe as a AK-47 assault rifle. But a few days ago, the machine got stuck. What is the problem? If you send a transaction to the network with a gas price insufficient to make a transaction or execute the code, your transaction will hang out in the status of pending for some long indefinite time. And if your business process depends on this account, then your business can completely stop. What actually happened to us — we wanted to transfer the received investments to our team of traders, but one of the accounts had a transaction on the status of pending for almost a day. We could not sign the withdrawal of funds from multisig purse. By the way, multisig 3of3 is a very bad idea.

fail-safe as a AK-47 assault rifle

We have sent a transaction to the network for Approve withdrawal of funds from the multisig wallet, accidentally a minimum cost per gas of 1 gwei was set. The transaction was sent into the network and hung in the status of Pending. All subsequent transactions for it also hung in the status of pending, regardless of whether the price of gas was set at 21 or even 41 gwei.

In attempts to somehow influence the situation — you generate more new transactions. Such transactions can accumulate 20 or even 100 until the very first problem transaction with the price for gas in 1 Gwei is processed — you will not be able to do anything. Given that the last week the network was overloaded a little more than always:

an unpleasant picture emerges … How much to wait is unknown, you can’t just to call to miners and beg them “please include my transaction in the next block”.

Moreover, if your account is also the Owner of some smartcontract then no action to configure the smartcontract you also can’t do.

But the solution was found!

You need to send a new transaction to the network, indicating that it has the same nonce as the transaction, which caused a congestion. Set the price of gas above, for example 20 Gwei. The transaction may send nothing — that is, you can send 0 Eth.

To do this you need: on the site https://etherscan.io find your “problem” transaction and copy the nonce.

Go to https://www.myetherwallet.com, then go to the Send Offline tab:

Enter your address in the From Address field, any address in the To Address field, Value / Amount to Send, leave 0, Gas price set at 20 gwei — 20000000000 (9 zeros after 20):

Then specify the nonce that you learned on the etherscan, select Keystore File (UTC / JSON), select the file keystore of your account, enter the password and unlock your account with the Unlock button. There will have to wait a little — there is a process of unlocking the account.

Then click on Generate Transaction, and then send the transaction by clicking the Send Transaction button.

That’s all! Let’s look on Ethetscan. Your transactions began to walk.

P.S. If you have sent several transactions with cheap gas to the network, you must repeat it for each of them.

Source: https://www.reddit.com/r/EtherDelta/comments/72tctz/guide_how_to_cancel_a_pending_transaction/

If you have any questions — don’t hesitate to write us at https://t.me/fidcomRu or info@fidcom.net

Join our ICO https://fidcom.net

How to remove Ethereum pending transaction was originally published in Fidcom on Medium, where people are continuing the conversation by highlighting and responding to this story.

Ever wonder how blockchain transaction fees work?

In recent months, the bitcoin network has experienced a surge in transaction fee costs. We want to take this time to give you a better understanding of why this is happening, and how your BTC.com bitcoin wallet helps keep you covered.

Bitcoin network transaction fees per month, as shown on btc.com/stats.

The bitcoin network currently has a capacity limit on the amount of transactions that can be included in the blockchain within a certain time period. This limit is currently one megabyte worth of transactions per one block, with miners producing a block roughly once every 10 minutes.

The rise in popularity of bitcoin as both a payment method and currency is causing an increase in the amount of transactions, which creates competition between those transactions so that they are included in the next block in the blockchain.

To be included in the blockchain, transactions must pay a fee to miners, which have an incentive to prioritize transactions that pay them a higher fee. This means that users who send an incorrect, low fee will experience significantly longer confirmation times, and, in many cases, may not get included in the blockchain at all.

Your BTC.com wallet keeps you covered by automatically using a dynamic fee strategy to determine the optimal fee that your transaction will require.

This gives you the ability to transact with confidence, knowing that recipients will receive funds within a reasonable amount of time and in the most cost-efficient way.

You can always use a lower, non-recommended fee by logging into your web wallet and selecting “Advanced Transaction Options.”

To dive deeper into bitcoin transaction fees, continue on to our additional blog post, “All you need to know: transaction fees.”


Ever wonder how blockchain transaction fees work? was originally published in The BTC Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

Ever wonder how blockchain transaction fees work?

In recent months, the bitcoin network has experienced a surge in transaction fee costs. We want to take this time to give you a better understanding of why this is happening, and how your BTC.com bitcoin wallet helps keep you covered.

Bitcoin network transaction fees per month, as shown on btc.com/stats.

The bitcoin network currently has a capacity limit on the amount of transactions that can be included in the blockchain within a certain time period. This limit is currently one megabyte worth of transactions per one block, with miners producing a block roughly once every 10 minutes.

The rise in popularity of bitcoin as both a payment method and currency is causing an increase in the amount of transactions, which creates competition between those transactions so that they are included in the next block in the blockchain.

To be included in the blockchain, transactions must pay a fee to miners, which have an incentive to prioritize transactions that pay them a higher fee. This means that users who send an incorrect, low fee will experience significantly longer confirmation times, and, in many cases, may not get included in the blockchain at all.

Your BTC.com wallet keeps you covered by automatically using a dynamic fee strategy to determine the optimal fee that your transaction will require.

This gives you the ability to transact with confidence, knowing that recipients will receive funds within a reasonable amount of time and in the most cost-efficient way.

You can always use a lower, non-recommended fee by logging into your web wallet and selecting “Advanced Transaction Options.”

To dive deeper into bitcoin transaction fees, continue on to our additional blog post, “All you need to know: transaction fees.”


Ever wonder how blockchain transaction fees work? was originally published in The BTC Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

Top 3 Bitcoin Companies Passing Transaction Fees on to Customers

transaction fees

Several companies and service providers in the bitcoin world have been forced to rethink their business model quite a bit. To be more specific, these enterprises are changing the way on-chain transaction fees are handled. Whereas these costs were previously paid by the company in question, that is no longer necessarily the case. The following companies recently announced customers will be responsible for paying on-chain transaction fees.

3. Coinbase

It is not entirely surprising to see bitcoin exchanges pass the burden of transaction fees on to their customers. In fact, the vast majority of bitcoin exchanges has maintained this business model for several years now. Coinbase was one of the few companies who still paid these costs out of their own pocket, but that is no longer the case.

As of march 21st, all Coinbase users are responsible for paying bitcoin transaction fees for every on-chain funds transfer. Any transfer taking place between Coinbase wallets will remain free of charge, as those transactions do not occur on-chain. So far, no one has responded negatively to this change, although it continues to highlight the mounting transaction fees need to be addressed sooner rather than later.

2. BitPay

Once the Coinbase announcement was made, it did not take long for BitPay to issue a similar statement. Considering how BitPay is the largest bitcoin payment processor in the world, it was only a matter of time until they addressed the mounting bitcoin transaction fees. A fee will be added to every BitPay invoice moving forward, yet merchant fees will not be affected by this change.

To be more specific, anyone who receives money through BitPay’s invoice service will still receive the same amounts. Payers, on the other hand, will be asked to include a miner fee for every transaction. In doing so, BitPay aims to maintain their zero-confirmation payment completion strategy, even as the on-chain transaction fees continue to increase. This change comes on the heels of BitPay raising the minimum invoice amount from US$0.04 to US$1.

1. Coinjar

It seems evident no bitcoin service provider can escape the mounting transaction fees these days. Coinjar, a well-known bitcoin -peer-to-peer lending service provider, announced they will change the fee structure as well. Earlier today, Coinjar issued a statement as to how they will charge a TX fee from April 3, 2017, onward.

As relaying transactions becomes more expensive, covering costs becomes nearly unfeasible for any bitcoin service provider. Costs have been mounting for all three of these companies, and they have all reached a  point where maintaining the current business model makes no economic sense. In the case of CoinJar, the company will charge a 0.0005 BTC fee per transaction moving forward.

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On the emerging consensus regarding Bitcoin’s block size limit: insights from my visit with…

On the emerging consensus regarding Bitcoin’s block size limit: insights from my visit with Coinbase and Bitpay

“The upgrade to larger blocks must be decisive and absolute.”

After visiting with Coinbase on 16 March 2017 and with BitPay on 20 March 2017, this is the message the resonates inside me: “the upgrade to larger blocks must be decisive and absolute.” The community does not want the blockchain to split. A split would threaten Bitcoin’s network effect, cause confusion in the media, and create unnecessary work for many Bitcoin businesses. This article presents my perspective on what is happening in Bitcoin and how I suspect the upgrade to larger blocks will unfold (hint: it will be anticlimactic). It is adapted from the presentations I gave at Coinbase and Bitpay, and augmented with the information I’ve learned since then. The images are screenshots of my slides.

Growth has hit a wall — The chart above illustrates how the size of blocks have grown since the genesis block was mined on 3 January 2009. Each block is represented by a tiny dot and the coordinates of that dot indicate the time the block was mined and the block’s size. Bright regions indicate that a lot of blocks of a particular size were mined at that particular time while dark regions indicate that very few blocks of a particular size were mined at that particular time.

We see that Bitcoin went through a dormant period for the first year, before exploding exponentially. Two important observations to make are:

  1. At nearly all points in Bitcoin’s history, there was a broad distribution of block sizes. The explanation is that sometimes a block is found within a few seconds of the previous block and so very few transactions are waiting to be cleared, while other times the next block may not be found for over an hour and so many transactions are waiting to be cleared. The distribution of block sizes is a result of miners dynamically adjusting the amount of block space they produce to meet the real-time demand from Bitcoin users.
  2. There are several bright white horizontal lines on the chart that correspond to historical (soft) limits imposed on the size of blocks by miners. In every case, once demand rose sufficiently, the line gave way to a new line at a larger block size. The Bitcoin network began to hit the uppermost line in 2015 and — as can be seen by dimming the exposure in the image above—no line has become this dark before breaking. This is the invisible wall at 1 MB.

The invisible wall at 1 MB has changed the behavior of Bitcoin — Because miners can no longer dynamically adjust the size of the blocks they produce to meet the real-time demand for block space (e.g., nearly all blocks are now 1 MB in size), transactions cannot be cleared in a timely manner. For example, one year ago the average confirmation time was 18 minutes; now it is 1 hour and 46 minutes. Fees have increased too, jumping from $0.09 one year ago to $0.83 today (28-day trailing averages).

As a result of these changes, Bitcoin has become less usable and thus (all else held constant) will be used less, giving opportunities to similar systems (alt-coins) without these internally-imposed constraints to out-compete Bitcoin.

The wall is internal, not external — Normally when a complex system in nature stops growing, it is the result of something in the external environment: less available energy or a physical blockage, for example. In the case of the Bitcoin network, the wall is internal. Inspecting the “genetic code” of a typical network node reveals a gene instructing the node to reject blocks that are over 1,000,000 bytes in size.

Node operators are modifying their nodes to accept larger blocks — Remember that there are human operators behind the nodes that make up the Bitcoin network, and these human operators want Bitcoin to thrive. Nodes operators are modifying their nodes to accept larger blocks today and signalling this fact to the network. Last year, 1.2% of visible nodes expressed a new “permissive gene,” by November 6.7% did, and today 12% do.

Miners are modifying their nodes to begin producing larger blocks — Like node operators, miners are also expressing their preference for larger blocks. Miners do this by leaving a signal in the blocks they mine. Last year, 0.5% of the network hash power produced this signal, by November 12% did, and today approximately 40% of the network hash power is signalling that they wish to begin producing larger blocks.

Part 2: How I suspect the upgrade to larger blocks will unfold

In point form:

  1. The number of node operators and miners signalling for larger blocks will continue to increase.
  2. Once a certain hash power threshold is met (perhaps 2/3rds or 3/4ths), miners will begin orphaning blocks from non-upgraded miners (e.g., refer to this piece from ViaBTC). This will serve as an expensive-to-ignore reminder to non-compliant miners to get ready for the upgrade.
  3. Miners will agree on a new block size limit that is equal to or less than what they believe the majority of the network is willing to accept (which appears to suggest a new block size limit less than or equal to 16 MB [some suggestions are 2 MB and 8 MB]).
  4. Several weeks of notice will be given before miners will begin to accept larger blocks, to allow node operators running non-upgraded software sufficient time to upgrade.
  5. Several weeks later, miners will begin producing larger blocks.
  6. The client implementation known as Bitcoin Core will split internally, as one faction modifies the software it maintains in order to permit its users to track the emerging consensus.
  7. The future will look similar to the past. Looking back, the bright line at 1 MB will not look that much different that the bright lines that came before it nor the bright lines that will come after it.

Part 3: Minimizing the risk of a blockchain split

The following section is descriptive rather than normative. I describes the mechanism that exists and that I believe will be used to deter a split (rather than the mechanism I believe ought to be used), taking into account our discussions at BU with miners and the incentive structures underlying bitcoin.

[Level 1] Anti-split protection — The first level of anti-split protection comes from the power of Bitcoin’s network effect. If we imagine a blockchain split where 20% of the hash power splits off to maintain a “small-block” branch, then blocks on that branch will initially be found 4x as slowly as blocks on the “large block” branch. If we further imagine that the large-block branch permits (for example) up to 8 MB blocks, then the capacity of the small-block branch (ignoring Level 3 protection described below) would be only 1/24th that of the large-block branch. On the large-block branch transactions would confirm quickly and fees would be small, whereas on the small block branch, wait times and fees would explode beyond the already-high levels we experience today.

Initially it would cost miners the same amount to mine a block on either the small-block or large-block chain. For example, if the cost to mine a block prior to a blockchain split was $10,000 USD, then the cost to mine a block immediately after the split would also be $10,000 USD regardless of which branch the miner chooses to mine on. What makes things interesting, is that a miner would not be able to sell his coins until 100 new blocks are built on top the block he mined, and so his decision for which chain to mine must reflect the probability that the branch he selects would survive long enough for these mined coins to be sold.

Which chain is more likely to exist 100 blocks in the future? The secure chain with 80% of the hash power and 24X the capacity, or the insecure chain with only 20% of the hash power, high fees and long wait time? As more miners defect from the small block chain, the probability of that chain making it to 100 blocks is further reduced, encouraging even more miners to defect. Eventually the prospects for the minority chain become so poor that it is completely abandoned. No small-block miner would receive any revenue from the blocks he mined.

Of course, since miners know this ahead of time, it is unlikely that any will bother to mine on the minority chain in the first place (and thus no split would occur).

[Level 2] Anti-split protection — Miners will orphan the blocks of non-compliant miners prior to the the first larger block to serve as a reminder to upgrade. Simply due to the possibility of having blocks orphaned, all miners would be motivated to begin signalling for larger blocks once support definitively passes 51%. If some miners hold out (e.g., they may not be paying attention regarding the upgrade), then they will begin to pay attention after losing approximately $15,000 of revenue due to an orphaned block.

[Level 3] Anti-split protection — In the scenario where Levels 1 and 2 protection fails to entice all non-compliant miners to upgrade, a small-block minority chain may emerge. To address the risk of coins being spent on this chain (replay risk), majority miners will deploy hash power as needed to ensure the minority chain includes only empty blocks after the forking point. This can easily be accomplished if the majority miners maintain a secret chain of empty blocks — built off their last empty block — publishing only as much of this chain as necessary to orphan any non-empty blocks produced on the minority chain.

Risks — In order to be certain that the blockchain does not split, miners need to be confident that a sufficient fraction of the network hash power has upgraded, so that Level 3 anti-split protection will be effective if necessary. The biggest risk associated with the coming upgrade is that miners attempt to upgrade too early and without sufficient support. Exchanges, wallets, and other similar businesses have a fiduciary duty to preserve their customers’ assets and so all will honor bitcoins on the majority chain.

Part 4: What you can do

In my meetings with BitPay and Coinbase, the second-most common theme (second to the theme that there should be no split) is that we need more genetic diversity in nodes that are ready and willing to accept larger blocks. Presently, most of the upgraded nodes run Bitcoin Unlimited. To reduce the chances that a bug takes out several nodes of “one species,” we want to see more nodes running alternative implementations such as:

  1. Bitcoin Classic (or XT if upgraded to accept larger blocks)
  2. Btcd (upgraded to accept larger blocks)
  3. Bcoin (upgraded to accept larger blocks)
  4. Bitcoin Core 0.14 (upgraded to accept larger blocks)

Anyone can help by running such a node, either at home or in the cloud. The members of Bitcoin Unlimited are happy to provide assistance to qualified developers who wish to upgrade and maintain alternative implementations to prepare for larger blocks. Feel free to contact Bitcoin Unlimited at info@bitcoinunlimited.info.

Acknowledgment

The author acknowledges Andrew Clifford, John Swingle, Zanglebert Bingledack, Jerry Chan and Norway for their comments and suggestions.

Bitpay Raises Minimum Transaction Amount To Cope With Growing Bitcoin Fees

Mounting bitcoin transaction fees make this payment method far less appealing as of late. Things have gotten so bad BitPay made some intriguing changes. As of today, the company charges a minimum transaction fee. This new invoice minimum is a direct response to the increasing cost of miner fees. Not a positive development for the … Continue reading Bitpay Raises Minimum Transaction Amount To Cope With Growing Bitcoin Fees

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6 Reasons Your Business Should Be Accepting Bitcoin

With over 80,000 companies already accepting Bitcoin payments as of 2014 and that number rapidly growing, business owners can no longer afford to ignore the world’s most popular decentralized currency. So let’s check out six reasons why accepting the virtual currency is a great idea.

[Note: This article was submitted by a guest author]


Multiple Reasons to Accept Bitcoin

Around the world, forward-thinking merchants from small shops to large corporations are joining the Bitcoin trend, with many of them doing so in order to improve cash flow by cutting costs and boosting their bottom line. But, is doing business in Bitcoin a worthwhile endeavor?

We’ve put together a list of some of the main benefits that you could experience from accepting Bitcoin payments.

shutterstock_482126278

Lower Transaction Fees

If you’re hoping to reduce costs, accepting Bitcoin payments is definitely worth trying since per transaction fees for accepting this currency tend to be cheaper than those for conventional credit or debit cards. According to Adam White, Coinbase’s director of business development and strategy, this is the one main reason why many smaller businesses are joining the bitcoin payment trend. On average, small businesses tend to pay higher credit card fees than the bigger companies, since they lack the scale needed to negotiate the cheaper rates. Because of this, Bitcoin is often an easier and cheaper alternative.

Get Paid Quickly

Getting paid on time is important for businesses of all sizes, but no more so than for small businesses, which often rely on prompt invoice payments in order to maintain a positive cash flow and stay afloat. Along with using an invoice factoring company such as BlueVine to keep the payments coming in, accepting Bitcoin payments can actually make it easier for clients to make prompt payments.

Unlike credit card payments, which are often kept on hold for up to a week or more in case a chargeback is requested, Bitcoin payments tend to arrive in merchants’ bank accounts within just a couple of days, meaning that you could have access to your money a lot faster.

Avoid Chargebacks

One of the biggest advantages of Bitcoin for merchants is that payments made with this currency are final, meaning that there are no chargebacks or returns, unlike when dealing with regular credit and debit card payments. Credit card chargebacks occur when the cardholder disputes a purchase that they have made with the card, often due to reasons such as the item being defective, or perhaps they were a victim of credit card fraud. Either way, credit card chargebacks are both inconvenient and costly to merchants, with a fee set at around $5-15 each.

shutterstock_473320117

Prevent Fraud

Bitcoin is gaining more and more popularity as an online currency as when a customer pays a company using Bitcoin, they are able to do so without divulging any personal details such as their name, address, date of birth, etc. Unlike when paying with a debit or credit card when this kind of personal data must be given in order for the transaction to be successfully processed, when paying with Bitcoin, customers can do so completely anonymously, giving them a practically fool-proof layer of identity protection that no other payment method can offer.

Accept International Payments

If your company has been putting off accepting international payments simply due to expensive cross-border transaction fees, accepting Bitcoin as a payment method could be the answer to your problem. Although going global is great for business, many small independent consultants and online retailers are unable to sell their services or products internationally due to a high cost that they are unable to afford. But, Bitcoin breaks down all these obstacles and borders with much lower transaction fees, allowing businesses to trade internationally and accept payments from anybody, in any part of the world, at just a click of a button. 

Customer Satisfaction

Last but not least, accepting Bitcoin as a payment method could lead to increased levels of client and customer satisfaction. With Bitcoin rapidly growing in popularity, it will be unsurprising if over the coming years, businesses will be expected to accept this currency as default. Offering your clients and customers the option to make payments with Bitcoin allows you to give them more choice, and therefore more control over the way they make payments and interact with your business. And, the added layer of protection from fraud and identity theft offered by Bitcoin can make this payment method a very attractive one to online customers who want to be as safe as possible.

If you’re not currently accepting Bitcoin as a payment method, there are many reasons to think about making and accepting transactions in this increasingly popular digital currency.

Will your business accept bitcoin? Why or why not? Let us know in the comments below!


Images courtesy of Shutterstock

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High Transaction Fees Remain Despite Lack of Network Congestion

Network congestion is not uncommon in the Bitcoin ecosystem. Over the past few months, these incidents have occurred multiple times. Cryptocurrency users are then forced to pay higher fees if they want to see transactions completed normally. But now that the mempool has shrunk in size, why do people keep paying higher transaction fees? A … Continue reading High Transaction Fees Remain Despite Lack of Network Congestion

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Altcoins Benefit as Bitcoin Transaction Fees Rises

For the umpteenth time in the past year or so, the Bitcoin transaction fees are skyrocketing once again. This is not particularly good news for a cryptocurrency often referred to as a cheaper way to send cross-border payments. While the transaction cost is still low compared to other offerings, some users are looking for better offerings in the altcoin scene.

According to a chart found on Reddit, the Bitcoin transaction fees have been going up in the past two years. Not just by regular small increases either, as the graph shows multiple spikes between 2014 and 2016. Interestingly enough, the transaction fee per block goes up as the Bitcoin value increases as well.

Bitcoin Transaction Fees Inadvertently Benefit Altcoins

Unfortunately, this is not good news for the people who want to promote or use Bitcoin. It is understandable a transaction fee has to be paid to the miners. After all, they complete the arduous task of ensuring new transactions are recorded on the blockchain every ten minutes.

It is not the first time the Bitcoin transaction fees are being pushed upwards. There have been several incidents of network congestion in the past, resulting in users being forced to pay more fees to get transactions confirmed. However, as the congestion cleared, the fees went down again. It appears as if these periods of increased transaction fees are occurring more often than before, though.

At the same time, there are those community members who are concerned over this trend, as everyone should be. The transaction fees per block are going up, which means it comes more expensive to send Bitcoin to other users. While some may argue the marginal transaction fee is not a big concern yet, it could become a big issue if this trend continues.

Some investors are already looking for other solutions. Diversification of a portfolio is important, and for those who want to optimize their strategy, only holding Bitcoin may not be the best course of action. Altcoins provide an alternative solution to maximize investments. But that is not all, as most of these alternative offerings have much lower transaction costs as well.

Different altcoins offer different solutions that make use of lower transaction fees. Both Ethereum and Dash seem to be attractive options to explore right now. Keeping in mind how the Mycelium wallet will support Dash by the end of the year, that is an offering worth exploring. But the Ethereum price is also increasing, while its transaction fees remain virtually unchanged.

Source: Reddit

Header image courtesy of Shutterstock

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How Is Ether Being Used By Ethereum Users?

Ethereum has been getting a lot of attention in recent times, yet it remains unclear as to why people use this cryptocurrency so often. With the network surpassing 40,000 transactions per day, there have to be some legitimate use cases for Ether. But where’s the money going?

Figuring Out The Use Cases For Ethereum

For Bitcoin users, it is apparent the cryptocurrency can be used in a variety of ways, ranging from paying for goods and services to payroll and everything in between. But when it comes to Ethereum, these use cases are not so obvious, yet there are over 40,000 transactions on the network every day.

The DAO is cause for great excitement among Ethereum enthusiasts these days, and there is a lot of funds flowing from user wallets to the wallet address for this project. Additionally, over 100,000 transactions have been generated by The DAO for internal transfers, as the project is currently in its creation phase.

Similar to Bitcoin, Ethereum enthusiasts will use Ether to pay for transactions and split bills among one another. Every ETH in circulation has a value, just like every BTC has. Additionally, the lower transaction fees may have swayed the minds of some Bitcoin users to use Ethereum instead for particular transactions.

One thing to keep in mind is how there is a lot of Ethereum trading taking place every day, and there are many platforms involved where users can do so. Every sell and buy order is a transaction in is own right, and those numbers will add up over longer periods. Then again, the same can be said for Bitcoin, so this is not a complete surprise either.

Other use cases for Ether range from prediction markets – such as Augur and GroupGnosis – as well as running Dapps. Although the number of Dapps is growing in the Ethereum ecosystem, they do not produce dozens of transactions per hour each. Every small bit helps to give the transaction numbers a boost.

Last but not least, there is still a lot of Ethereum mining taking place on a daily basis, and mining pools have to pay out their users as well. Considering how there are a lot of people involved in this process, mining payouts can split into multiple transactions for nearly every block. Some people estimate one-third of all ETH transactions are a direct result of mining payouts, although that might be slightly overestimated.

Source: Reddit

Header image courtesy of Shutterstock

The post How Is Ether Being Used By Ethereum Users? appeared first on NEWSBTC.

The Quick Death Of The Zero-Fee Bitcoin Transaction

Zero-fee transactions were the norm in 2011, the exception in 2012, increasingly rare since, and now finally gone. pic.twitter.com/jO9GPlGTiK — Arvind Narayanan (@random_walker) May 15, 2016 The increasing amounts of Bitcoin transactions have slowly led to an increase in Bitcoin fees as miners favor the transactions with fees as priority transactions. This means that it […]

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MultiBit HD Bitcoin Wallet Update Removes Excess Fees

TheMerkle_Multibit HD

There are multiple Bitcoin wallet solutions available for both computer and mobile users all over the world. Multibit HD is one of those wallet solutions gaining a bit of traction, and the team has released their new client. The most significant chance in this release is how transaction fees have been reduced, which many Bitcoin enthusiasts will enjoy.

Also read: Decentralized Bitcoin and Fiat Exchanges Are Still A Utopian Dream

Multibit HD Version 0.3 Available For Download

TheMerkle_Multibit HD Bitcoin

Making one’s Bitcoin wallet solution stand out from the other offerings is not that easy these days. Some wallets even do so in a slightly negative manner, by charging users higher fees than normal. Until very recently, Multibit HD would fit into this category, as the wallet solution implemented BRIT fees for the past two years.

The way BRIT fees work is by adding a small fee on top of the regular transaction cost for Bitcoin users. Not only did this increase transaction costs, but it was also rather complicated for users to wrap their heads around it. The Multibit HD team has come to a decision and removed the BRIT fee structure from their wallet. Instead, all Bitcoin transactions will only be subject to regular miner fees, putting it on par with the rest of the Bitcoin wallet solutions.

The second significant change for MultiBit HD users comes in the form of how the software license agreement has been modified. Now that BRIT fees are no longer part of the software, users no longer have to agree to an explicit agreement, allowing the team to use the MIT license from now on.

Moreover, there is now a semi-automatic update feature available to all MultiBit HD users in the world. This option can be turned on or off at the user’s leisure, although the upgrade process will not affect wallet data. Only the official application will be updated during this process. Some users may look at this as a minor change, but it does make it easier for enthusiasts to always have the latest software version installed.

As one would come to expect from a new Bitcoin wallet software version, a lot of minor bugs and issues have been resolved. MultiBit HD will now properly sync with TREZOR, and a problem with restoring a wallet showing the wrong timezone has been addressed as well. Full details can be found here.

Source: Reddit

Images credit 1,2

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The Bitcoin Ecosystem is In Better Shape Than People Want You To Believe

TheMerkle_Bitcoin is FineTheMerkle_Bitcoin is Fine

It goes without saying there has been a lot of debates and discussions taking place in the world of Bitcoin and digital currency lately. However, various industry experts feel how everybody should calm down, as the situation is far less dire than imagined.There is no reason to think Bitcoin is losing momentum, let alone dying, simply because of a few misconceptions.

Also read: Host Card Emulation is a Prime Example Of Why Bitcoin is Better

Bitcoin Is Not Your Average Payment Platform

TheMerkle_Bitcoin is Strong

Many people have been comparing Bitcoin with other established payment services all over the world, such as PayPal, Western Union, and even Neteller. Doing so does not only limit the imaginative possibilities of the popular digital currency, but it also shows that people give Bitcoin far less credit than it deserves. People see Bitcoin as an answer to certain questions, but are those the right questions to ask? For instance, do we even need instant transaction confirmations? In fairness, the system works – in this regard – fine the way it is, and it has been doing so for several years.

Another interesting topic of debate that sprouted on the Internet a few weeks ago is whether or not Bitcoin should remove the transaction fees altogether in the future. These fees are an incentive for the miners to include that specific transaction in the next network block, assuming the transaction is a valid one. Bitcoin without a fee model would do the digital currency – and underlying blockchain – a lot more harm than good in the long run.

Maintaining a high level of network security comes at a cost, and those costs have to be recouped from somewhere. Transaction fees does not mean digital currency is no longer suitable for cheap value transfer either, although the fee model is evolving to satisfy the market-based margins. Potential solutions are already in the works, such as sidechains and the Lightning network.

Last but not least, the mining process is far more decentralized than most people give it credit for. With nearly every existing mining pool being public, there are users from all over the world dedicated computational power to mine digital currency and secure the network. Plus, not every Bitcoin node is controlled by miners, and these nodes will still keep a watchful eye on the Bitcoin ecosystem. This is also where the Bitcoin block size debate comes into effect, as a large bump in block size could end up putting a lot of nodes out of business due to insufficient hardware capabilities.

BitFury Co-founder Valery Vavilov outlined all of these topics on a broader scale – as well as other points of interest – in a post on Medium. Anyone who claims to have the best interests of the digital currency ecosystem at heart needs to read through that entire post, as well as the other documents provided as reference material. Bitcoin is in far better shape than certain people want us to believe.

Source: Medium

Images credit 1,2

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Bitcoin Wiki Contains Wrong Information Regarding Transaction Fees

Bitcoin Wiki Contains Wrong Information Regarding Transaction Fees

Relying on the Bitcoin wiki for up-to-date information on this disruptive digital currency is not always the best idea. Even though the concept of a wiki is to let anybody contribute, changes usually have to be approved by the administrator, or any of the moderators active on that Wiki page in question. According to the Bitcoin wiki, many Bitcoin transactions are typically processed in a way where no fee is expected at all.

Also read: BlockNotary Integrates Factom to Optimize Digital Fingerprint Storage

Decentralized Wiki Solution For Bitcoin Needed

Having a dedicated Wikipedia page for Bitcoin itself is a great idea. However, such a dedicated platform needs to provide accurate and up-to-date information regarding Bitcoin and all of its technical specifications. Unfortunately, that is not the case right now; due to negligence by the people running the Bitcoin wiki.

A helpful Reddit user pointed out how the Bitcoin Wiki states the following: “At the moment, many transactions are typically processed in a way where no fee is expected at all.” Truth be told, this scenario was correct many moons ago, but it is no longer valid information right now. Sending Bitcoin transactions without a fee is still possible, mind you, but they will take much longer to be included in a block.

Additionally, nearly every Bitcoin wallet in existence today – regardless of whether this is a light client, full client, or mobile solution – will automatically include a transaction fee for every Bitcoin payment. The recent discussion on whether or not to introduce a fee market is another example of why the Bitcoin Wiki is far outdated, and needs to be maintained properly.

The person in charge of the Bitcoin Wiki is also the person running Bitcointalk, Bitcoin.org, Bitcoin.it and /r/Bitcoin. It makes sense how juggling so many jobs at the same time can be a struggle, but this is where delegation can play a major role. That being said, this is not something person is overly good at. Otherwise these mistakes would never be found on the Bitcoin Wiki in the first place.

Creating a decentralized Wiki solution for Bitcoin could be a way forward; However, this also opens the door to loads of spam and even more wrong information to be found on the Bitcoin Wiki. Some oversight will always be needed, although more participation from the community will help in providing up-to-date details regarding the Bitcoin ecosystem.

Bitcoin Transaction Fees Are Here To Stay

Regardless of how you want to look at it, Bitcoin transaction fees are not going away anytime soon. Nor should they, as transaction fees are an incentive for the miners to include that transaction into the next block on the network. In fact, transaction fees will keep going up over time, although their monetary value in fiat currency may or may not increase altogether, depending on the Bitcoin value.

But there is an argument to be made as well, as Bitcoin’s transaction fees can be considered to be unpredictable. This can cause some issues down the line, especially when trying to take adoption of digital currency to a next level. One can only hope Bitcoin developers can address this issue before it becomes critical.

What are your thoughts on the Bitcoin transaction fee structure? Let us know in the comments below!

Source: Reddit

Images courtesy of Shutterstock

The post Bitcoin Wiki Contains Wrong Information Regarding Transaction Fees appeared first on Bitcoinist.net.

Neteller Lowers Bitcoin Deposit Fee To 1%, Twice As Cheap as Credit Cards

Neteller Lowers Bitcoin Deposit Fee To 1%, Twice As Cheap as Credit Cards

One of the major announcement in the Bitcoin world came from an unlikely ally, as Neteller, a leading online payment processor, enabled the virtual currency as a payment method last year. Bitcoin users can fund their Neteller account with virtual currency, and spend it on any website where this payment method is accepted. Just recently, Neteller has lowered the Bitcoin deposit fees from 5% to 1%.

Also read: QuickActions Wins Disrupt SF 2015 Hackathon

The Game of Neteller Deposit Fees – Bitcoin Reigns Supreme

From a financial perspective, Bitcoin opens up a lot of opportunities due to its frictionless and nearly instantaneous nature of sending payments around the world. Anyone can send money to anyone else in the world in a matter of mere seconds, without relying on centralized authorities such as banks or other financial institutions.

But the biggest advantage Bitcoin has over any existing payment method is the minimal transaction fee. Regardless of who is sending money where, the transaction fee will always be a fraction of the cost compared to using traditional payment methods. By the look of things, companies accepting Bitcoin as a payment method, are starting to see the benefits of virtual currency and its low fees as well.

When Neteller announced Bitcoin became a form of payment on the platform, the digital currency community was excited. But that excitement was tempered rather quickly when some users found out. Bitcoin deposits were subject to an outrageous fee of 5%. While Bitcoin is known for its price volatility, a 5% fee on deposits is not justifiable by any means.

It has taken quite a while, but Neteller seems to have come to its senses and lowered the Bitcoin deposit fee to just 1%. Even though that fee might still seem high to many users, things are heading in the right direction. Especially when considering other payment methods, such as credit & debit cards, are still subject to a 1.9% fee. Paysafecard remains the most expensive way of funding a Neteller account, as there is a 7% surcharge when doing so.

More Platforms To Follow Neteller’s Example?

Merchants are rather hesitant to accept Bitcoin payments directly, despite there being no need to set up additional infrastructure or pay extra fees. Whenever a third-party payment platform, such as Neteller, starts accepting Bitcoin payments, the merchant won’t notice – nor care – how the account got funded. But these percentages are a strong indication of why Bitcoin is a superior form of payment for any type of business.

Hopefully, other merchants and platforms will start promoting the lower fees associated with Bitcoin transactions, compared to traditional payment methods. In the end, both the merchant and the consumer score a win when using Bitcoin over other payment options, which is exactly what digital currency wants to prove to the world.

Have you used Bitcoin to fund a Neteller account? If so, did you do so when the fees were higher or are you planning to use the platform now that fees have been lowered? Let us know in the comments below!

Source: Imgur

Images courtesy of Neteller, Shutterstock

The post Neteller Lowers Bitcoin Deposit Fee To 1%, Twice As Cheap as Credit Cards appeared first on Bitcoinist.net.

Bitcoin wallet Copay boasts of dynamic transaction fees

 Copay which proudly claims to be a true Bitcoin wallet and not just an account service has released another update with its version 1.1.3 which has features such as dynamic transaction fees, ability to prevent initiating transactions with unconfirmed funds, and advanced sending options. Copay was taken out of beta in the month of June this year while the company was also taking heed of the community’s feedback to make the software more user-friendly.

Now Copay has chosen to focus on giving its users the option of dynamic transaction fees to prepare for any upcoming tests on the Bitcoin network.

According to Bitcoin Company CoinWallet, which will conduct a stress test on the Bitcoin network in September, there would be a 30-day backlog in confirming transactions.

Copay has also added an advanced sending feature to the “send” User Interface which will allow the users to access the dynamic fees directly through the sending interface and pick between three priority levels which will reflect varying mining fees.

A user will also be able to allow or prevent spending of unconfirmed funds in the advanced settings that Copay has worked on to ensure smoother user experience. The settings will be saved for the following transaction, but can easily be modified each time from the sending interface.

Besides these features, this version of Copay is also offering Italian, Russian, and Greek language options, which adds to the ability to handle transactions with multiple outputs, and fixes minor bugs.

Copay is an open source Bitcoin wallet which secures a consumer’s account with multiple signatures and not just one, it also allows a consumer to take stock of security of the account in his hands by eliminating the role of the third party in securing a consumer’s funds.

This allows, Copay claims, to act like a joint checking account with multiple users; therefore to send or receive any payment, the group must first collectively approve each transaction.

The post Bitcoin wallet Copay boasts of dynamic transaction fees appeared first on NEWSBTC.

Mining’s Uncertain Future: Dave Hudson Talks Blocksize, Transaction Fees & Decentralization

cointelegraph.com / Alyssa Hertig / 2015-08-10 05:17 PM

“The system needs more analysis” might be Dave Hudson’s motto as far as Bitcoin mining is concerned. It’s not a surprising opinion for an engineer. Hudson, who’s VP of Software for blockchain company PeerNova, dissects mining networks as a hobby. His leading mining blog hashingit.com teems [...]

The post Mining’s Uncertain Future: Dave Hudson Talks Blocksize, Transaction Fees & Decentralization appeared first on The Bitcoin Channel.

Mike Tyson, Fee Discovery, Contributor, & More Bitcoin Headlines – #YMBLive 7-29-15

Download | Subscribe This is another wild episode of #YMBLive, our weekly LIVE Bitcoin podcast! Join us every Wednesday from 1-3PM Eastern as we cover the latest Bitcoin headlines and share plenty of crazy Bitcoin opinions. If you can’t watch the show live, the audio and video will always be available to download. This Week’s ...

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Bitcoin-to-Cash Service Bit2Me Cancels Fees to Stay Competitive

Bitcoin-to-cash service Bit2Me has cancelled its commission fees in a bid to remain competitive in the Spanish market.

The announcement follows on from BTCPoint, another withdrawal service which launched earlier this month with zero commission fees.

Previously, Bit2Me charged its users a 1% commission fee per transaction, raising some concerns among Spain’s bitcoin community.

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