satoshi

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FounderSr. MemberActivity: 364Merit: 2583 Re: What's with this odd generation? February 12, 2010, 03:08:08 AM

Last edit: February 14, 2010, 06:36:31 AM by satoshi #4 There's a small transaction fee for very large transactions. The node that generates the block that contains the transaction gets the fee.



If the same money gets sent again, it won't incur the fee again. If all you have is generated coins in your wallet, if you send them all in one huge transaction, it has to bundle hundreds of 50 bc coins together. After that it's just one line to send the combined unit.

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AdministratorLegendaryActivity: 3878Merit: 7917 Re: What's with this odd generation? February 12, 2010, 08:31:52 AM #5 Quote from: satoshi on February 12, 2010, 03:08:08 AM There's a small transaction fee for very large transactions. (usually over 10,000 bc) The node that generates the block that contains the transaction gets the fee.



The fee is based on the KB size of the transaction and intended to compensate the network for the resources used to process it.



If the same money gets sent again, it won't incur the fee again because it'll be small. The first time they're bundling hundreds of 50 bc coins together. After that it's just one line to send the combined unit.



Does the sending client send more BitCoins to account for the fee (so the recipient gets what he's expecting)? Why couldn't someone just send 1000 small transactions to bypass fees? Does the sending client send more BitCoins to account for the fee (so the recipient gets what he's expecting)? Why couldn't someone just send 1000 small transactions to bypass fees? 1NXYoJ5xU91Jp83XfVMHwwTUyZFK64BoAD

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FounderSr. MemberActivity: 364Merit: 2583 Re: What's with this odd generation? February 14, 2010, 06:28:03 AM #8 Quote from: theymos on February 12, 2010, 08:31:52 AM Does the sending client send more BitCoins to account for the fee (so the recipient gets what he's expecting)?

Yes.



Quote from: SmokeTooMuch on February 12, 2010, 01:11:09 PM why do we even need fees ? i thougt the no-fees-feature was one of the advantages of bitcoin ?!

Almost all transactions are free. A transaction is over the maximum size limit if it has to add up more than 500 of the largest payments you've received to make up the amount. A transaction over the size limit can still be sent if a small fee is added.



The average transaction, and anything up to 500 times bigger than average, is free.



It's only when you're sending a really huge transaction that the transaction fee ever comes into play, and even then it only works out to something like 0.002% of the amount. It's not money sucked out of the system, it just goes to other nodes. If you're sad about paying the fee, you could always turn the tables and run a node yourself and maybe someday rake in a 0.44 fee yourself. Yes.Almost all transactions are free. A transaction is over the maximum size limit if it has to add up more than 500 of the largest payments you've received to make up the amount. A transaction over the size limit can still be sent if a small fee is added.The average transaction, and anything up to 500 times bigger than average, is free.It's only when you're sending a really huge transaction that the transaction fee ever comes into play, and even then it only works out to something like 0.002% of the amount. It's not money sucked out of the system, it just goes to other nodes. If you're sad about paying the fee, you could always turn the tables and run a node yourself and maybe someday rake in a 0.44 fee yourself.

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FounderSr. MemberActivity: 364Merit: 2583 Re: What's with this odd generation? February 14, 2010, 03:52:23 PM

Last edit: February 14, 2010, 04:02:56 PM by satoshi Merited by krogothmanhattan (5), darosior (5), Micio (1), PrimeNumber7 (1) #10 Right. Otherwise we couldn't have a finite limit of 21 million coins, because there would always need to be some minimum reward for generating. In a few decades when the reward gets too small, the transaction fee will become the main compensation for nodes. I'm sure that in 20 years there will either be very large transaction volume or no volume.

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AdministratorLegendaryActivity: 3878Merit: 7917 Re: What's with this odd generation? February 14, 2010, 09:46:58 PM #11 What property guarantees the continuing profitability? If the cost of electricity triples in 20 years, the number and size of transactions wouldn't change (as far as I know), but running a node would become more expensive and possibly unprofitable.



What stops someone from creating a client that will send repeated transactions just below the fee maximum when it has to in order to avoid fees? Or from many different identities to the same one (if this is possible)? I can see there being a great demand for such a client if BitCoin becomes very popular. 1NXYoJ5xU91Jp83XfVMHwwTUyZFK64BoAD