Bitcoin: Why do some transactions over -the -free fees

When it comes to Bitcoin transactions, one of the most depressed aspects is wildly inflated charging costs. This phenomenon has increased in recent years, so many users were confused and wonder who makes these expensive mistakes. In this article, we will look at the following reasons for excess and check who is responsible for high priority.

understand Bitcoin transactions

Bitcoin is a decentralized digital currency that operates independently of conventional financial systems. If you do a transaction on the Bitcoin network, your coins will be transferred to the entire network, and the miners will check you with complex algorithms. After the review, transactions are added to the blockchain, which are used in the public recording of all Bitcoin transactions.

Why fees play a role

The fee is an essential aspect of Bitcoin transactions that acts as a network service. Pay costs are determined by block remuneration, transaction fee and network overload. When the miners confirm the transactions and add a blockchain, gas costs occur, which, depending on the complexity of the transaction, can range from 0.0001 to 100 BTC per transaction.

Who is responsible for a high priority fee?

There are several factors that contribute to high priority fees:

1
The complexity of the transaction : complex transactions with multiple raw materials and expenses, for example. B. Payment for several recipients or high assets generates higher fees.

• Network Interior : If the Bitcoin network is overloaded, miners have increased difficulty in validating transactions that generate higher fees.

3
Block Size Limitations : Lock Size Limit 1 MB has been reached several times, making miners waiting for blocks with more space to approve the transactions, which led to longer validation times and higher fees.

• Central mining : In recent years, some mining funds have increased significantly, which can lead to an increase in charge due to increasing demand.

What makes these transactions wildly overpaid?

Several parties pay high priority fees:

• Berger : Miners are responsible for approval of transactions and adding blockchain. They generate gas costs based on the complexity of the transaction, the overload of the network and the size of the block size.

• Mining pools It is known that large mining funds are controlled by a significant portion of network performance, which can lead to higher fees due to their increasing demand.

3
Payment Service Provider (PSP) : PSP, for example, PayPal and BitPay, often charged high-cost Bitcoin transactions, often more than 10-20% of the transaction value.

• Wallet : Means that special software or hardware is used, which can increase their increased processing performance and complexity.

Diploma

Wildly increased fee costs for Bitcoin transactions are a complex problem in which several factors contribute to this. Although some sides, such as miners and mining pools, also play high priorities for paid prices, others, such as payment service providers and the subject of goods, are also important. While the Bitcoin network develops, it is important for users to understand these factors and take steps to facilitate their costs.

Tips for Reducing Fee

1
Use special software : Use items or software that is specifically designed for Bitcoin transactions to reduce processing performance and fees.

• Select payment service providers with careful : Select PSPs offering competitive charge prices and quick transaction processing time.

3
Check out alternative cryptocurrencies : Some old coins have a lower cost and faster business time, making them attractive alternatives to Bitcoin.