bitcoin-dev

Over Half of Replace-by-Fee-Rate Replacements Are Mined

Over Half of Replace-by-Fee-Rate Replacements Are Mined

Original Postby Peter Todd

Posted on: February 24, 2024 22:25 UTC

The discussion revolves around the intricacies of the Libre Relay's implementation in handling transactions and its associated fee rate.

Unlike conventional systems that adjust based on the mempool conditions, Libre Relay adopts a memoryless approach, allowing for Replace-By-Fee (RBF) transactions to occur even beyond the anticipated next block fee rate. This capability implies that users can persist in replacing their transactions with higher fees, although this strategy could lead to significant financial outlay without necessarily offering a proportionate benefit in terms of bandwidth efficiency, especially at low fee rates.

Historical data indicates that the maximum fee rate for the next block has never exceeded 1000 satoshis per virtual byte (sat/vB), with the lowest recorded fee rate being 1 sat/vB. Utilizing these extremes for conservative estimations suggests that deploying substantial funds to secure minimal bandwidth usage might not be economically rational. The analysis suggests that direct Denial-of-Service (DoS) attacks on public nodes could achieve similar outcomes at potentially lower costs.

Further examination reveals an interesting update in the versioning of the codebase concerning this mechanism. A specific patch noted in the discussion is absent in the v26.0 release, and it remains unclear whether it will be included in the upcoming v26.1 version. However, the process for incorporating this change is straightforward, indicating an openness to adapt the system's functionality to enhance its performance or security features. For more detailed insights into these analyses, Peter Todd's works, including his exploration of one-shot replace-by-fee and denial-of-service attacks, offer valuable perspectives. These can be accessed through Peter Todd's website and other articles hosted there.