Given this, and the fact that each block contains a limited amount of space, miners will generally try to add transactions with higher fees to the blockchain first.Ĭonsequently, this means that users creating Bitcoin transactions are in a constant bidding war where the cost of transactions fluctuates based on the amount of transactions needing to be processed.Īn unprocessed transaction sits in a pool of unconfirmed transactions called the Bitcoin mempool. When a miner finds a block, they get a block reward plus the transaction fees associated with transactions in the block. When a user creates a Bitcoin transaction, they have to include a transaction fee to be paid to miners to incentivize miners to add their transaction to the blockchain. ![]() Understanding Fees on the Bitcoin Network
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