delvingbitcoin

Warnet + Increase Tx Relay Rate

Warnet + Increase Tx Relay Rate

Posted on: January 29, 2024 22:41 UTC

The discussion focuses on determining an appropriate transaction (tx) relay rate for a network, which involves balancing the need for security and efficiency.

A key consideration is the asymmetric bandwidth usage that occurs when a transaction propagates across the entire network. To prevent potential abuses of network bandwidth, a minimum fee rate is employed to discourage "free relay" attacks and assign a cost to bandwidth usage in satoshis.

The tx relay rate is crucial because it limits the ratio of incoming to outgoing traffic for each node. Without such a rate or if it's set too high, an attacker could exploit the network by paying minimal fees while consuming excessive bandwidth. Conversely, a relay rate that's too low would lead to slow transaction propagation and significant discrepancies in the mempools of nodes. The synchronization of the top 1MB of the mempool is particularly important as it provides miners with the data needed to confirm high-fee transactions.

Transactions are prioritized based on their likelihood of being included in a block through topological fee rate sorting, leveraging the relay rate to manage network bandwidth effectively. Testing the optimal tx relay rate presents challenges, especially in identifying when it's set too high. However, observing the synchronization state of the top-of-mempool can offer insights into when the rate is too low. This can be done by examining compact block logging, which reveals the number of transactions that nodes need to request to complete a block.

The current proposal suggests increasing the tx relay rate, supported by evidence indicating that the existing rate may be insufficient under certain network conditions, as observed from recent increases in mempool activity. When implementing warnet to simulate such adjustments, the natural increase in fee rates during peak mempool periods should be considered as opposed to random distributions. This affects the synchronization metric, with random rates quickly aligning the top of the mempool, while natural increases tend to cause divergence.

Regarding Replace-by-Fee (RBF), it is a strategy that might not be necessary unless there is an issue with creating multiple transactions from a limited set of unspent transaction outputs (UTXOs). The use of RBF should be contingent on whether it addresses a specific problem within the network.