Re: [bitcoin-dev] Total fees have almost crossed the block reward

From: Jameson Lopp <jameson.lopp@gmail•com>
To: Melvin Carvalho <melvincarvalho@gmail•com>,
	 Bitcoin Protocol Discussion
	<bitcoin-dev@lists•linuxfoundation.org>
Subject: Re: [bitcoin-dev] Total fees have almost crossed the block reward
Date: Thu, 21 Dec 2017 17:02:37 -0500	[thread overview]
Message-ID: <CADL_X_fw01-PfyTPXqYAyzwV9CO8tPLrd1_eZu16Z_kz-xM7LQ@mail.gmail.com> (raw)
In-Reply-To: <CAKaEYhJ0vC8wf9yYjovfoZLB-TTvEnVB2a3mkC-YDzmnLwtz1Q@mail.gmail.com>

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I'd hope that the incentives are in place to encourage high volume senders
to be more efficient in their use of block space by batching transactions
and implementing SegWit, though this may not be the case for providers that
pass transaction fees along to their users.

We've been trying to be more proactive about outreach regarding efficient
use of block space to our own customers at BitGo - when we break down the
cost savings of implementing a new technique, it generally helps to hasten
their adoption. I suspect that in many cases this is an issue of education
- we should be more proactive in calling out inefficient uses of block
space.

Good resources to bookmark and share:

https://bitcointechtalk.com/saving-up-to-80-on-bitcoin-transaction-fees-by-batching-payments-4147ab7009fb

https://blog.zebpay.com/how-zebpay-reduced-bitcoin-transaction-fees-a9e24c788598

- Jameson

On Thu, Dec 21, 2017 at 4:30 PM, Melvin Carvalho via bitcoin-dev <
bitcoin-dev@lists•linuxfoundation.org> wrote:

> I asked adam back at hcpp how the block chain would be secured in the long
> term, once the reward goes away.  The base idea has always been that fees
> would replace the block reward.
>
> At that time fees were approximately 10% of the block reward, but have now
> reached 45%, with 50% potentially being crossed soon
>
> https://fork.lol/reward/feepct
>
> While this bodes well for the long term security of the coin, I think
> there is some legitimate concern that the fee per tx is prohibitive for
> some use cases, at this point in the adoption curve.
>
> Observations of segwit adoption show around 10% at this point
>
> http://segwit.party/charts/
>
> Watching the mempool shows that the congestion is at a peak, though it's
> quite possible this will come down over the long weekend.  I wonder if this
> is of concern to some.
>
> https://dedi.jochen-hoenicke.de/queue/more/#24h
>
> I thought these data points may be of interest and are mainly FYI.  Though
> if further discussion is deemed appropriate, it would be interesting to
> hear thoughts.
>
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>

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