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Calculate Bitcoin Transaction Size

Saving Up To 80% On Bitcoin Transaction Fees By Batchingpayments

Saving Up To 80% On Bitcoin Transaction Fees By Batchingpayments

Author of various Bitcoin documentation. My opinions are my own. Saving up to 80% on Bitcoin transaction fees by batchingpayments What if I told you that theres a way you can save more than 80% on transaction fees by compressing your Bitcoin transactions? Youd probably think I was crazy or was proposing a radical change to the Bitcoin system. But Im not. Since the earliest version of Bitcoin, it has been possible to combine multiple Bitcoin payments into a single transaction, significantly reducing overhead. In this article, well describe why payment batching works, how much it can save you, how to use it, and how much block chain space would be saved if it was used more frequently. Inputs, change outputs, and paymentoutputs Lets imagine buying lunch at a local pub. First, well pay with physical cash to see how it works and then well switch to electronic cash that is, bitcoin to see the similarities. Alice the customer has a pleasant lunch at Bobs Pub and is presented with a bill by her waiter Charlie for $10. Alice pays Bob with a twenty dollar bill and receives $10 in change. Bitcoin transactions work basically the same way. To keep the examples simple, lets imagine one bitcoin equals one dollar. Alice receives the bill for 10 BTC and starts a transaction by adding a 20 BTC input from her wallet. Then she adds two outputs: a 10 BTC output that goes to Bob and another 10 BTC output that returns the change to her own wallet. Heres what Alices serialized Bitcoin transaction looks like, with the different parts colored according to how theyre used: white for the boilerplate parts of the transaction, pink for Alices input, green for Alices change, and blue for the payment to Bob. Byte map of a P2PKH transaction with one change output and one paymentoutput And here are the Continue reading >>

Bitcoind - How To Calculate Transaction Size Before Sending (legacy Non-segwit - P2pkh/p2sh) - Bitcoin Stack Exchange

Bitcoind - How To Calculate Transaction Size Before Sending (legacy Non-segwit - P2pkh/p2sh) - Bitcoin Stack Exchange

Assuming all the inputs you are spending are from regular "pay to address" transactions, each input will contribute 180 (plus or minus 1) bytes to the transaction. Each output adds 34 bytes to the transaction. And there's a fixed extra 10 bytes which are always present. The "plus or minus 1" comes from the fact that each input needs a signature to be claimed. The signature contains two 32 byte values, but if either of the values has a first byte of 0x80 or more, it has a 0x00 byte prepended to it. So I'm assuming one of the two is high and the other is low. That way I'm off by at most one byte per input. So if your transaction has in inputs and out outputs, the transaction size, in bytes will be: For example, this transaction has 40 inputs and 16 outputs. That gives us a transaction size of i.e. 7754 +- 40 bytes. The actual size is 7761 bytes. If the inputs are from "pay to pubkey" transactions then the inputs are smaller than for "pay to address" transactions. And this will be different also for "pay to script hash" inputs too, depending on how/if that's implemented. Edit: This transaction was made with bitcoins stolen in the Linode heist and shows a transaction size of 1337 , possibly a deliberate use of leetspeak in the blockchain. Edit2: Now that compressed public keys are commonplace, each input is 32 bytes shorter and so the transaction size is now: It is important to understand that the transaction fee you have to pay to make a payment is based on how you received the funds you are using to make the payment. The outgoing payment (assuming it's only to one place) is always going to be the same size. So the 'out' part will always have two standard "pay to address" scripts. The size of the 'in' part will depend on how many outputs you have to claim, which depends o Continue reading >>

Bitcoin - Calculate Transaction Fee For Size

Bitcoin - Calculate Transaction Fee For Size

Bitcoin - Calculate Transaction Fee for size A bitcoin transaction typically looks as follows. 180 bytes of input34 bytes of output10 bytes extra If input is compressed 180 - 32 = 148 bytes You can find the formula here. In the simplest typical case, you'll have one input and two outputs (the recipient, and change). So in=1 and out=2. According to the linked formula, the transaction size will be about 160+ 2 * 34+10 = 258 bytes Today you can see most transactions with 1-10 satoshis/byte. Lets take 10 satoshis/byte then 258 * 10 = 2580 satoshis = 0.00002580 BTC Even if we have more inputs and outputs, we can say the transaction fee should betypically 0.0001 BTC. The block size is limited to 1 MB. So a miner has to choose transactions to fit in 1 MB of size.Each transaction comes with its own transaction fee. If the miner successfully mines a block, he gets all the transaction fees for the transactions heincluded in his block. So naturally, he will pick the transactions with the highest transaction fee. Don't confuse this with the block reward of 12.5 BTC. Lets say a transaction pays 0.001 BTC for it to go throw. And other transaction pays 0.005 BTC. And they are 512 KB each. So the miner gets 0.01 + 0.015 = 0.025 BTC Lets say 4 transactions pays 0.01 BTC each with size of 256 KB, now the total fee for the block willgo up to 0.04 BTC. Since all four transactions can fit in the block. Transaction fee does not matter to the miner. Satoshis/Byte Matters to him 0.01 BTC/512 KB = 0.00001950 BTC/KB = 1950 Satoshis/KB = 1.95 Satoshi/Byte((0.015/512)/1000) 10^8 = 2.92 Satoshis /Byte(0.01/256) 10^5 = 3.9 Satoshis /Byte The miner can easily determine the transactions, he should include the block to optimise the mining fee. How transaction fee is related to confirmation delay ? You Continue reading >>

New Service Finds Optimum Bitcoin Transaction Fee

New Service Finds Optimum Bitcoin Transaction Fee

New Service Finds Optimum Bitcoin Transaction Fee A new service is offering bitcoin users an answer to the common question: what is the optimum transaction fee? Using network data from the past three hours, CoinTape lets users compare the current waiting times associated with various fee tiers, calculated in satoshis per byte. It claims to predict delays with 90% confidence. The default fee used by many bitcoin wallets is 10 satoshis (0.0000001) per byte. However, according to CoinTape, paying 20 satoshis (0.0000002 BTC) per byte will get you the fastest and cheapest transaction on the network. For the average-sized bitcoin transaction,645 bytes, this equates to a fee of 129 bits (0.000129 BTC) (note that this is calculated on a transaction's size, not its dollar value). The most popular fee ratio CoinTape lists, 4150 satoshis per byte, used in more than 30,000 transactions today alone, is double this. As the number of bitcoin transactions rise , competition for space in each block is heating up. Miners prioritise transactions with the highest fees, working down the list until the block reaches itslimit , commonly 750,000 bytes . Transactions that don't make the cut remain in the miner's 'memory pool', a kind of bitcoin limbo. They may be included in future blocks depending on their priority or fee. Currently, you can opt out of the fee altogether.However, there has been debate as to whether this should be raised, with a recent pull request to make a 10,000 satoshi minimum to reduce spam on the network. CoinTape indicates that avoiding a fee is more likely to result in delays to your payment. It could take up to six blocks, or around one hour (blocks are created roughly every 10 minutes). The leader in blockchain news, CoinDesk is an independent media outlet that striv Continue reading >>

How To Calculate Transaction Size Before Sending (legacy Non-segwit - P2pkh/p2sh)

How To Calculate Transaction Size Before Sending (legacy Non-segwit - P2pkh/p2sh)

How to calculate transaction size before sending (Legacy Non-Segwit - P2PKH/P2SH) I know that I pay the transaction fee per kB, so how can I calculate how large the transaction will be before I send it via the RPC api. I run a site using bitcoins, and I cannot let the user's balance go negative, so I need to know if they have enough balance to cover the cost. Assuming all the inputs you are spending are from regular "pay to address" transactions, each input will contribute 180 (plus or minus 1) bytes to the transaction. Each output adds 34 bytes to the transaction. And there's a fixed extra 10 bytes which are always present. The "plus or minus 1" comes from the fact that each input needs a signature to be claimed. The signature contains two 32 byte values, but if either of the values has a first byte of 0x80 or more, it has a 0x00 byte prepended to it. So I'm assuming one of the two is high and the other is low. That way I'm off by at most one byte per input. So if your transaction has in inputs and out outputs, the transaction size, in bytes will be: For example, this transaction has 40 inputs and 16 outputs. That gives us a transaction size of i.e. 7754 +- 40 bytes. The actual size is 7761 bytes. If the inputs are from "pay to pubkey" transactions then the inputs are smaller than for "pay to address" transactions. And this will be different also for "pay to script hash" inputs too, depending on how/if that's implemented. Edit: This transaction was made with bitcoins stolen in the Linode heist and shows a transaction size of 1337 , possibly a deliberate use of leetspeak in the blockchain. Edit2: Now that compressed public keys are commonplace, each input is 32 bytes shorter and so the transaction size is now: Is the formula described in Edit2 up to date with bitcoin v Continue reading >>

Bitcoin Fees Explained Are Bitcoin Transaction Actually Free ?

Bitcoin Fees Explained Are Bitcoin Transaction Actually Free ?

Last updated on April 15th, 2015 at 10:37 am This video contains advanced concepts that were explained in previous videos. If you are new to Bitcoin its best to watch the previous tutorials before watching this one. One of the major advantages of Bitcoin is that you can supposedly send money between any two points on earth for free. But if youve sent Bitcoins once or twice before you probably noticed that there are in fact transaction fees so whats going on here exactly ? Before I explain how fees are calculated I want to explain what Bitcoin fees are. When miners order transactions into blocks inside the Blockchain they get paid twice The first payment is by what you would call the system which grants them a bounty for succeeding in entering their block of transactions. The second payment is the fees the users attached to the transactions that got included in that block. But you dont always have to pay these fees, there are certain rules that dictate if and when you need to pay them. Of course you can choose to disregard the rules and not attach a fee to your payment but it is then possible that your transaction will take a long time to be processed. If the numbers of Bitcoins you are sending is smaller than 0.01 Bitcoins you will be required to pay a miners fee. This fee is required in order to prevent users from spamming the network with micro transactions. Even if the whole transaction is more than 0.01 Bitcoins but the change you get back from your inputs is more than 0.01Bitcoins you will need to pay a fee. Lets say you want to buy a watch for 1.999 Bitcoins. You use an input of 2 Bitcoins and receive back an input of 0.001 Bitcoins as change. Since the change is such a small amount you will require to pay an additional miners fee for it as well. If the inputs yo Continue reading >>

Blog | Tradeblock

Blog | Tradeblock

1) Historical Transaction Type Trends: 2009-2015 Non-basic or atypical transaction types began appearing on the Bitcoin blockchain in 2013. Atypical transactions types comprised 0.03%, 1.23%, and 10.15% of the total transaction volume in 2013, 2014, and 2015 (to-date), respectively. 2) Transaction Type Trends vs. Average Transaction Size: 2014-2015 Thus far in 2015, P2SH transactions have reached as high as 15% of the daily transaction volumes; meanwhile, multisig transactions have remained under 2%, partly owing to the efficiency of P2SH over the latter. Non-standard transactions appear to coincide with recent attempts to saturate the network with spam transactions, also known as the stress tests. Note: Chart represents 30-day moving averages. The chartabove summarizes the mean and median daily transaction sizes for the five categories described. Basic bitcoin transactions with 1 input and 2 outputs are typically~250 bytes of data. P2SH and non-standard transaction categories, which together comprise 87% of atypical transactions, have average byte sizes that are 52% and 80% higher than basic transactions, respectively. 4) Blockchain Data Size vs. Transaction Volume: 2015 The somewhat muted effect of atypical transactions on the blockchain size is illustrated in the two charts above. Of note, P2SH transactions have accounted for 7% of total transactions thus far 2015, while the overall data size is disproportionately higher at 10% of the total. The use of atypical transaction scripts likely had an impact on the increasing global average transaction size; albeit, the effect is limitedgiven that such transactions comprise only 10% of the total volume. Shifting the focus back to basic transactions, the average daily size of such transactions was 566 bytes in 2015, per Fig Continue reading >>

Making Sense Of Bitcoin Transaction Fees

Making Sense Of Bitcoin Transaction Fees

A competitive fee must be added to every Bitcoin transaction. Failure to do so can result in loss of time, money, or both. But overpayment can also cost you money. Fees may seem irrational or unnecessarily complex. This article breaks fees down in detail, and includes a discussion of how using segwit can reduce fees. Bitcoin fees can be counterintuitive. Consider two examples based on reports from actual users. Alice, a successful blogger, displays a QR code to accept Bitcoin donations (this is a bad idea from the perspective of privacy ). Once every month, she sweeps the accumulated funds into her Electrum wallet. She usually pays a fee amounting to 1.5% of the balance. One month, Alice receives hundreds of small donations, an unusually high number. Unlike previous monthly transfers, this one requires a fee of 90% even though the balance was no different from the others. Bob is a sporadic Bitcoin user who has watched fees rise since 2016. Although he has increased the amount he pays in fees, he doesnt know how to calculate an acceptable fee. While browsing Overstock one day, Bob notices a limited-time 50% discount on quality bedsheets. A payment Bob made last week went without a hitch, but today Bobs payment becomes stuck. He misses the deal and eventually needs to ask for a refund after the transaction finally does confirm. Although the root cause in both cases may differ, the outcome is the same. A user who has come to expect one behavior from Bitcoin sees the opposite for no apparent reason. The root cause in both cases is lack of understanding around fees. Bitcoin transaction fees work differently from fees charged by banks. A bank levies fees based on the amount of currency being transacted. The Bitcoin network, in contrast, levies fees based on the amount of dat Continue reading >>

Bitcoin Transaction Fees Are Dropping To $1, Can This Be Sustained Long-term?

Bitcoin Transaction Fees Are Dropping To $1, Can This Be Sustained Long-term?

Join our community of 10 000 traders on Hacked.com for just $39 per month. Over the past few days, bitcoin transaction fees have dropped to around $1 for median-size payments, even though the bitcoin mempool size has remained relatively high at above 120 million bytes. Widely utilized bitcoin wallet platforms like Blockchain are recommending a fee of 55 satoshis per byte, which round up to just above $1 for median-size transactions. Previously, merely one month ago, bitcoin transactions increased to $30 for median-size transactions, particularly on non-Segregated Witness (SegWit) wallet platforms and exchanges. Given that SegWit can further decrease transaction fees by 35 percent as cryptocurrency hardware wallet manufacturer Ledger explained, if leading companies such as Coinbase and Blockchain integrate SegWit, transaction fees for normal bitcoin payments could fall below $1. Recently, Coinbase, one of the most valuable cryptocurrency company in the sector along with Bitmain and Binance, was heavily criticized for struggling to implement SegWit and transaction batching. Several analysts went as far as to claim that Coinbase is contributing significantly to the congestion of the Bitcoin network. In response, Coinbase CEO Brian Armstrong stated that the company will soon adopt SegWit and transaction batching to ensure that users enjoy lower transaction fees and a seamless experience in transacting with bitcoin. BitGo, the multi-signature security service provider and blockchain technology company, revealed this week that 2MB blocks have been mined this week, due to SegWit-optimized transactions and inputs created on BitGo with extremely low fees. BitGo demonstrated that without a block size increase to 2MB, bitcoin blocks can expand to 2MB with SegWit integrated. The f Continue reading >>

Estimating Transaction Size (in Bytes)

Estimating Transaction Size (in Bytes)

According to the transaction fee rules, the size of the transaction is used to calculate fees ( ). From what I've read elsewhere, the size of the tx will be: 180 bytes per input + 34 bytes per output + 10 bytes. However, while I've found that calculation to hold up most of the time, it doesn't seem to be accurate all of the time. Is there a more reliable way to know how large a transaction will be so that appropriate fees can be assigned when creating a raw transaction? Quote from: BradZimdack on November 15, 2012, 01:31:46 AM According to the transaction fee rules, the size of the transaction is used to calculate fees ( ). From what I've read elsewhere, the size of the tx will be: 180 bytes per input + 34 bytes per output + 10 bytes. However, while I've found that calculation to hold up most of the time, it doesn't seem to be accurate all of the time. Is there a more reliable way to know how large a transaction will be so that appropriate fees can be assigned when creating a raw transaction? There is no way of knowing in advance how big the signatures are going to be. You can try making several transactions and based on the size of those figure out how large the fee must be. You could also use a conservative estimate for the size and have users in some cases pay a little bit more. Quote from: BradZimdack on November 15, 2012, 01:31:46 AM According to the transaction fee rules, the size of the transaction is used to calculate fees ( ). From what I've read elsewhere, the size of the tx will be: 180 bytes per input + 34 bytes per output + 10 bytes. However, while I've found that calculation to hold up most of the time, it doesn't seem to be accurate all of the time. Is there a more reliable way to know how large a transaction will be so that appropriate fees can be assig Continue reading >>

Bitcoin User Attaches $204,000 As A Transaction Fee

Bitcoin User Attaches $204,000 As A Transaction Fee

Several transactions in the block with a similar profile (many inputs, many outputs, p2sh|multisig, paying 29x normal fee rate) took half of the blocks space ~ (500kB). At that time ~400 sat/byte was the normal priority fee which would amount to roughly 2 BTC in cost. Almost immediately after discovering this, BTC.com announced onits official blog that it is willing to refund 78 bitcoin to the sender. If that was your transaction, we want to help. Were not interested in making a quick buck, especially if it comes at the loss of another bitcoiner. Thats why were reaching out, said the BTC.com team. At first, members of the community were left confused by the statement of BTC.com, which read, All things said and done, the correct fee should have been approximately 2 BTC. The Merkle reached out to BTC.com and asked the team how several transactions can lead to a 2 bitcoin fee, especially when the size of the Bitcoin mempool -the holding area for unconfirmed transactions- has been declining at a rapid rate. BTC.com told The Merkle that the transactions in question had around 17 inputs, with a staggering 3,920 satoshis per byte. In order to truly understand how much of a large fee that is, Blockchain currently recommends a fee of less than 100 satoshis per byte for all transactions. Even with a fee less than 100 satoshis per byte, transactions are likely to be confirmed within minutes after being sent. It is refreshing to see companies like BTC.com try to help out a fellow Bitcoiner when they mistakenly attach a$200,000 fee to their transactions. What exactly caused this will likely remain a mystery. Continue reading >>

Bitcoin And Other Cryptocurrencies Fees Calculation Explained

Bitcoin And Other Cryptocurrencies Fees Calculation Explained

Ledger, as we saw in our last article , stores amount and ownership information. If there is a change in ownership, entries added to the ledger. Finance companies use something called double bookkeeping. It utilizes two accounts to track this change. Both these accounts should always tally. Example I deposit $100 in my account, the bank creates two entries Positive number denotes an asset while negative denotes a liability. I own the money so its an asset for me. While the bank needs to pay whenever I demand so, its a liability for them. On withdrawing $10, both my asset and banks liability decrease: As you will note, total for both sides is 90. This is a simple example of a ledger flow. Cryptocurrencies have their own unique way to create these entries. Public ledgers like a blockchain have a fixed amount of coins. So, tracking all coins new and old is necessary. Cryptocurrencies use a system known as Transaction inputs and outputs. Lets look at how a cryptocurrency ledger works. Alice mines 100 coins: Now, she sends 50 coins to Bob (assuming fees are zero). Alices existing coins will act as input and create two outputs Alice gets 50 in change and Bob gets 50 in credit: Total of coins held by Bob and Alice is 100 ie the coin mined by Alice. Next, Bob sends 25 coins to John and Alice mines another 100 coins. Freshly mined coins dont have any previous input. While there are another two outputs created for Bob-John transaction: Now that we have 100 new coins, total in white boxes is 200. Lets say Alice sends Adam 40 coins. Wallets will always try and optimize transactions. So, it will combine two inputs to create the two outputs Alices change and Adams credit: The total still doesnt change and it remains 200. Now, these are just some of the possible input/output combinat Continue reading >>

Here's How To Deal With Those Ridiculously High Bitcoin Transaction Fees

Here's How To Deal With Those Ridiculously High Bitcoin Transaction Fees

Here's how to deal with those ridiculously high Bitcoin transaction fees A Bitcoin logo is seen inside a sushi restaurant in central Tokyo, Japan. But that sushi might cost you a hefty sum in transaction fees. Image: FRANCK ROBICHON/EPA/REX/Shutterstock Four dollars. That's how much it'd cost me to send 0.01 bitcoins, or about $42, from one Bitcoin address to another right now. And this is actually quite cheap compared to a few days ago, when transaction fees were even higher, making Bitcoin barely usable for microtransactions. And cheap transactions, especially for small amounts of BTC, are supposedly one of Bitcoin's biggest advantages. SEE ALSO: Yes, you can now tip strippers with Bitcoin The transaction fees are raging due to several factors. One is the size of the block in Bitcoin's blockchain, which is limiting the number of transactions that can go through at any given time. Bitcoin's network is powered by miners, people and companies who use a tremendous amount of computing power to create new bitcoins. And when there's too many transactions to processwhich currently happens very oftenminers will prioritize transactions that pay a higher fee. The situation improved with the recent SegWit upgrade of the Bitcoin software, but it will take a whileweeks or monthsbefore users start seeing benefits of SegWit. The average #Bitcoin transaction fee nears $7! pic.twitter.com/UIP7p9PX8Z Blockchair (@Blockchair) August 23, 2017 Another reason is Bitcoin Cash, a competing cryptocurrency that split off from Bitcoin on August 1. Since the two cryptocurrencies are similar, it's simple for miners to switch from mining Bitcoin to Bitcoin Cash. And for reasons explained here , sometimes it's more profitable to mine Bitcoin Cash than Bitcoin. Whenever miners start switching to Bit Continue reading >>

Bitcoind - How To Calculate Transaction Bytes Of A X Btc? X=0.2 - Bitcoin Stack Exchange

Bitcoind - How To Calculate Transaction Bytes Of A X Btc? X=0.2 - Bitcoin Stack Exchange

how to calculate transaction bytes of a x BTC? x=0.2 but i will not understand what are in and out.as describe in this link in=40 and out=16 This question is pretty hard to understand languagewise, could somebody that understood its intent please improve it and properly tag it? Murch Jun 3 '15 at 12:47 In the simplest typical case, you'll have one input and two outputs (the recipient, and change). So in=1 and out=2. According to the linked formula, the transaction size will be about 160+2*34+10 = 258 bytes. It does not depend on how many bitcoins you are sending. However, if the money you are sending came from many different sources, you will have many inputs and the transaction will be bigger. Again, this does not depend on the amount of money, but on the complexity of your wallet's history. in =1times = .2btc **out**=2times = 0.8btc and 0.2btc . is it right?? what is my transaction fee for that??? sorry for disturbing you.. thank you Md Shahadat Hossain Jun 10 '15 at 6:07 Usually a fee of 0.0001 bitcoin will get your transaction confirmed quickly. Meni Rosenfeld Jun 10 '15 at 17:53 i transaction many type of amount. but a amount .0002BTC i do transaction many times, it fees as 0.00012568, 0.00015528 BTC, 0.00012096 BTC. how can i calculate this value??? Md Shahadat Hossain Jun 11 '15 at 5:29 @ShahadatHossain: I don't know. Meni Rosenfeld Jun 11 '15 at 11:28 Usually, you want to do this to estimate a fee before sending a transaction. Transaction fees are way more complicated than they probably should be. I'll stick to calculating the transaction size here, but keep in mind there's more to the picture when talking about fees. in is the number of inputs, and out is the number of outputs. If you haven't seen this discussed before, here's a crash course. Using a block exp Continue reading >>

How Do Bitcoin Fees Work?

How Do Bitcoin Fees Work?

the intersection of finance and technology Its time to talk about the elephant in the room, Bitcoin fees. When Bitcoin first launched, the cost of each transaction fee was negligible and in many cases, you could send transactions with zero fees which would still be processed. However, Im afraid that time has long gone and the average cost of a transaction has now crept above a dollar. There are several factors which have led to the current fee price. When Bitcoin first launched, the size of each block was at the discretion of each miner. However, early on in the life of Bitcoin, a maximum value was placed on the size of each block, known as the block size. This was implemented to prevent early network spam, set at 1MB and enshrined in Bitcoins code. The effect of this maximum size is to limit the number of transactions which can be included in each block. As there are only approximately six blocks per hour, this limits the transaction throughput of the bitcoin network. Over the last few years, the number of users and the amount of transactions per user has increased dramatically. However, the throughput of the network has remained static, limited by the unchanging block size. In my article on mining , we learned that network fees are one of the incentive mechanisms that encourage miners to do their work to secure the network. A few years ago, the number of transactions per second was less than the capacity of the network as defined by the block size. This meant that miners would include nearly all transactions irrespective of the fees paid as it didnt impact their overall reward. Now however, the number of transactions per second waiting to be processed exceeds the capacity of each block. As a result, it makes sense for miners to prioritise those transactions with the Continue reading >>

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