delvingbitcoin

Replace-By-Fee-Rate vs V3

Replace-By-Fee-Rate vs V3

Original Postby oohrah

Posted on: February 1, 2024 05:12 UTC

In the discussion of Replace-by-Fee (RBF) incentives and relay protection, an important distinction is made between the perceived value of transactions with different fee rates.

It is argued that transactions with low fee rates are deemed less valuable to miners, as the revenue they could potentially generate is more uncertain and would likely be realized further in the future compared to high fee-rate transactions. Consequently, a transaction with a higher fee rate is considered more valuable due to its ability to provide increased immediate value to the miner. This perspective challenges the notion of "free" relay, especially when considering the elimination of infinite cycles within the system. The implication is that relaying transactions is not actually free because it confers additional value to miners through the prioritization of transactions with higher fees.

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