[Bitcoin-development] Making fee estimation better

Peter Todd pete at petertodd.org
Fri Oct 25 22:49:38 UTC 2013

On Fri, Oct 25, 2013 at 12:51:22AM -0700, Jeremy Spilman wrote:
> Gavin, can you confirm the best place to  read  up on the discuss
> fee estimation changes for v0.9?
> I think fee estimation at its core is about providing a data point,
> or even call it an API, which can be used however you see fit.
> What parameters do I want to see in a 'fee estimation' API?
>  - 30 minutes vs 24 hours processing time
>  - Confidence Levels (50%/90%)
> What properties does the result have?
>   - Is it globally consistent?
> Talking about fees.. I read this:
> https://gist.github.com/gavinandresen/2961409 and there is so much
> there I really liked.

State-of-the-art thinking has changed a lot; that document is over a
year old and needs significant changes to update it.

> Any pointers for reading more about the leading theories on
> transaction fees? For example, how well do they correlate with
> network security? Are we getting what we are paying for? :-)

Network security is currently funded by inflation rather than
transaction fees. This is likely to remain true for at least a few more
years. FWIW the cost of that security on a per transaction basis is
about $18, see http://blockchain.info/charts/cost-per-transaction

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