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How do I speed up Bitcoin transactions?

August 12, 2020

The protocol that Bitcoin uses to confirm transactions has a few features. A feature that any user can use to expedite or unblock a transaction that is stuck in Bitcoin.

If a transaction takes a long time, don’t panic, it’s not a scam. The truth is that it is stored in the mempool (network storage) for various reasons, waiting to be served by the miners. There are several ways miners can service a stuck transaction. Each of these methods is briefly referred to below.

Method 01: use a CPFP

A CPFP (Child Allowance for Parents or Children Pay for Their Parents) is, as the name suggests, a method by which a daughter transaction is to be paid for for their parent transaction. This is one of the easiest ways to expedite a Bitcoin transaction.

How do I speed up Bitcoin transactions?How do I speed up Bitcoin transactions?

Bitcoin, like most cryptocurrencies, is designed to generate an orderly token entry and exit record. An order that is both timed and made using UTXO or unspent credits. This means that if we do two transactions (A and B), transaction A will be the first to be processed before B. Thanks to this, we can use this trick to speed up or unblock the transactions that we have on the network for a long time.

How does a CPFP work?

For a CPFP to work, it is enough to make a new transaction using the same or a different wallet we control. We’re submitting a new child transaction of the stuck transaction but adding a higher commission for the child transaction. This way the final commission is enough Let the miner select that transaction. However, since there is an additional transaction from us, twill also take this transaction (the stuck one) to start the verification process. This way, both the parent and child transactions are committed at the same time.

But how is that possible? Isn’t it illegal? The short answer is: No, it is completely legal and complies with the Bitcoin protocol. As mentioned earlier, Bitcoin is working properly. So basically, a CPFP forces miners to include both transactions in order to claim commissions.

And it is so otherwise the second transaction would be classified as invalid, since the latter depends on the information from the first. What makes this possible are the Bitcoin consensus rules. Because of this, it is completely legal. In addition, you never double spend or default on a commission.

However, remember one thing: Make the daughter transaction on your wallet or any other wallet under your control, otherwise you will lose that money.

Related: What is it a UTXO?

Method 02: use RBF

An RBF (Replace By Fee) is another commonly used method to optimize a transaction. This is another common way to speed up a Bitcoin transaction.

As the name suggests The point is to replace the transaction that was originally made with a new transaction. This new transaction will have the same characteristics as the first. However, The replacement transaction will have the commission the miners need to process it.

In order to perform this type of operation (RBF), the purse or wallet must support this property. Also, it can only be used in transactions created with this property. These transactions are labeled with the property ldquo; Replaceable rdquo; marked. It is only possible to use the RBF for these marked transactions. Many wallets (like Bitcoin Core, Electrum or Samourai) offer support for this function. However, you should check that it is checked to be able to enjoy it.

Like the CPFP method, this method does not depend on any third party so it is available to all users. Only conditions that must be met by the RBF method should be considered.

Method # 03: use a throttle

This method consists in spreading the TX-ID of the transaction over the network so that the miners can consider it.

This type of service has two modalities:

The free one, in which information is passed on via the network using special software. Usually it is a service provided by some cryptocurrency networks, platforms and companies that provide the service of purses or wallets in the cryptocurrency ecosystem.

And the payment modality offered by companies dedicated to mining. This consists of completing the inclusion of the transaction in question in the next block to be added. to the blockchain in exchange for paying the correct commission. nbsp;

In this sense, The second method is more effective than the first, as the user pays the appropriate commission himself so that the transaction is added to the block as soon as possible, which is added in the chain of blocks.

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