delvingbitcoin

Merging incomparable linearizations

Merging incomparable linearizations

Original Postby ajtowns

Posted on: November 20, 2023 09:46 UTC

In the realm of optimizing transaction processing, the discussion revolves around the efficiency of chunking transactions to maximize feerate, a critical factor in determining the priority for transaction confirmation.

The example provided illustrates a scenario where transactions are grouped into chunks with the aim of achieving a higher collective feerate. Specifically, it is shown how a chunk labeled as BACFE, possessing an initial feerate of 13.5 (calculated as 66/5), compares to individual transactions and other possible groupings. Despite its seemingly advantageous position, it is noted that this chunk eventually gets surpassed by another configuration, AEDGC, in terms of feerate.

A detailed analysis reveals that within the BACFE chunk, identifying childless descendants, which in this case are E and F, can offer insights into optimizing the grouping for a better feerate. It was pointed out that splitting the original chunk into two parts, [BACE,F], would result in an improvement. This is based on the observation that F alone has a feerate of 11, which, while lower than the combined feerate of BACFE (13.2), suggests that a strategic redistribution of transactions within chunks can enhance overall efficiency.

Furthermore, the conversation delves into the methodology for comparing different transaction groupings or diagrams through what is termed as "compatible total order." This comparison hinges on identifying the earliest point of divergence between two diagrams and using this as a basis for establishing superiority in terms of feerate. Additionally, the concept of "prefix-intersection merging" is introduced as a technique guaranteed to produce an optimized linearisation of transaction groupings. This optimized grouping, denoted as $L_3$, is assured to have a feerate equal to or greater than the feerates of the initial groupings being compared, according to the defined total order. However, it is acknowledged that this method does not ensure comparability between $L_3$ and the original configurations based on the original partial order criteria, hinting at the complexity involved in achieving absolute optimization across different transaction grouping scenarios.