CP/Blockchain Transaction Fees - Working this out for mass adoption?

General Counterparty
1

Hi all,

First post here, it would be great if I could please receive some guidance and clarity, from the CP community.

Is it possible to create a definitive overview of transaction costs relating to each method of sending assets per solution, whether this is via CP wallet, XCP Chrome Wallet, Tokenly Pockets, Indiesquare Mobile solution, or other?

To date, it has been quite unclear how the transaction costs are calculated, what amount is required to send transactions (esp. via CP wallet as it works on diminishing balance) and basically how this can be simplified to understand that if an asset is rolled out to a mass market, what impact this will have on the end users - i.e. how much BTC they will need to own, to make 1,10,50,100 + transactions.

Maybe, the easiest way to roll out to a mass market, that are not upto speed on crypto - i.e. just want to use it, is perhaps to consider some type of ā€˜pre-loadā€™ of BTC which covers the amount of transactions they would purchase, on behalf of the asset?

For example, 10 transactions may cost $0.30 (backed with relevant BTC) so the end user sees each transaction as being $0.03 p.t., ā€˜give or takeā€™ on the rates. This knowledge enables transparency and clarity in the underlying cost, to transact an asset, in this new economy.

Specifically, for Scotcoin to be a success this year, if we can promote 1p (0.01 GBP) transaction costs (or less!), this would offer excellent marketing opportunities, and be a sound solution to cement the underlying transaction costs as its 100% transparent, plus, everyone can ā€˜relateā€™ to this innovation from a ā€˜fiatā€™ monetary standpoint. If anyone can help us achieve this goal, please contact me - derek@scotcoin.org.

If clarity is created and the market can offer the most competitive solution for such a request, this will definitely become an extremely advantageous addition to the ecosystem, as a whole.

Thanks and I look forward to some great input here.

Derek

2

Hi Scotcoin,

Transaction costs are only charged by Bitcoin because the miners must be paid to validate transactions.

Thereā€™s no particular ā€œCounterparty transaction feeā€, itā€™s only a matter of making sure transactions get processed by Bitcoin.
There are some recommended values to make sure transactions do get processed (e.g. the fees must be higher than the commonly discarded sub-dust amount of 5430 satoshis).

You can set your own (higher or lower) if you run your own service.
https://github.com/CounterpartyXCP/counterparty-lib/search?utf8=āœ“&q=DEFAULT_FEE_PER_KB&type=Code

DEFAULT_FEE_PER_KB = 10000 equals 0.0001 BTC and you probably canā€™t get away with less than 0.00005430 BTC (and of course if you pay 0.0001 BTC or more, transactions will get processed faster).

On Reddit you can find reports of experiments done by people whose cheap transaction fees delayed transactions by more than a day.

Regarding various approaches: you can see this discussion for more details on the currently achievable transaction processing costs and ideas for lowering the frequency of payouts by withholding payouts for a period of time (say a week or whatever).

1 Like
3

Hi something, thanks very much for your response, it is really useful and great appreciated to help in understanding more about miner fees.

Thanks!