As of this weekend, GreenAddress is the kickoff Bitcoin wallet to include a replace-by-fee option. With it, users tin increment fees on their transactions amongst the click of a button--a characteristic welcomed past times some, every bit it increases the likelihood a miner volition include a transaction inward a block. This tin aid transactions instruct “unstuck” inward representative of heavy transaction load, in addition to benefits fee marketplace position dynamics. Others dispute the feature; critics fearfulness that replace-by-fee could terms reliability of unconfirmed transactions, every bit payments tin inward to a greater extent than or less cases hold upwardly reverted.
To exam the feature, GreenAddress enabled a preview of the selection on my ain GreenAddress wallet several weeks ago. This, inward turn, allowed me to exam which parts of the broader Bitcoin ecosystem are create for replace-by-fee – in addition to which parts are not.
The results below are based on advertizing hoc experimentation from my ain perspective every bit a user – non an official analysis conducted amongst scientific precision.
GreenAddress from the Sender’s Perspective
The kickoff test, of course, was GreenAddress itself, from the sender's perspective. (Tested on the Chrome extension version of the wallet.)
Since this weekend, the GreenAddress replace-by-fee selection is switched on past times default. (Users that don’t desire to utilize the characteristic demand to disable it inward the “Settings” panel.) When switched on, each transaction sent from the wallet includes a replace-by-fee flag. This way, network nodes in addition to miners know it's eligible to hold upwardly replaced past times a conflicting transaction that includes a higher fee.
After sending my kickoff replace-by-fee transaction, I was automatically redirected to the “Transactions” screen, where all past times wallet-transactions are displayed. And, underneath the (still unconfirmed) replace-by-fee transaction, a novel tab had appeared: “bump fee.”
While opt-in replace-by-fee every bit included inward Bitcoin Core allows replacing whatever unconfirmed transaction (even if this way unconfirmed transactions are “canceled”), GreenAddress users tin exclusively resend bitcoins from the same inputs to the same outputs, but amongst a higher fee. It exclusively allows users to “boost” a transaction to increment the likelihood a miner volition include it inward a block.
Clicking on the “bump fee” tab opens a mini-menu. On superlative of the menu, text displays how fast the transaction is expected to confirm. In my case, it was expected to hold upwardly included inward the adjacent block. Nevertheless, the card allowed me to bump the fee: times 1.5, times 2 or times 3.
[image 1]
However, in addition to to a greater extent than important, if a transaction is notexpected to hold upwardly mined inward the kickoff available block because the fee is likewise low, GreenAddress offers a dissimilar option. In that case, the mini-menu offers users the selection to include a fee large plenty to have got the transaction included inward the adjacent two, 3 or half-dozen blocks.
[image 2]
Having bumped the fee, a novel icon appears underneath the transaction, which reads “updated,” accompanied past times a push to display the quondam transaction ID. Meanwhile, the “bump fee” push is soundless there, too, pregnant I could bump the fee i time again.
All inward all a really straightforward in addition to easy-to-use process.
What the Pools Are Doing
Wallet software inward itself is non sufficient to supersede transactions. (Or: bump fees.) Whether replace-by-fee is active on the Bitcoin network genuinely depends on miners.
A serial of exam transactions revealed that a bulk of miners currently does non apply whatever replace-by-fee policy. All of the large Chinese pools – AntPool, F2Pool, BTCC in addition to BW.com – ignored the fee boosted transactions completely, every bit did KnCMiner. This currently adds upwardly to to a greater extent than than75 percent of hash powerfulness on the network.
Other pools did apply a replace-by-fee policy, presumably the opt-in version. These include BitFury, Slush Pool, BitClub in addition to CKPool, which adds upwardly to nearly20 percent of all hash power. (The other five per centum of hash powerfulness on the network is controlled past times pools or miners representing less than 1 per centum of hash power, which didn’t hand to mine whatever blocks during my tests..)
So what does this mean?
While xx per centum may seem low, it's genuinely non in addition to then bad when keeping inward heed the primary role of replace-by-fee: “boosting” a fee to ensure a transaction is mined.
Of course, amongst exclusively xx per centum of hash powerfulness applying a replace-by-fee policy, there’s exclusively a xx per centum risk the really adjacent miner volition pick upwardly the boosted transaction. But at that spot is also nearly a 3-out-of-4 risk that the boosted transaction volition hold upwardly included inward a block inside i hour. And it volition almost for certain hold upwardly included inward a block inside several hours.
Needless to say, that is a important improvement compared to transactions that won't confirm for days, every bit has been the representative during to a greater extent than or less “stress tests” on the network.
Users who desire to (ab)use replace-by-fee to revert an unconfirmed transaction, meanwhile, exclusively have got nearly a xx per centum risk this volition succeed. At to the lowest degree 75 per centum of the fourth dimension they’ll pay their “victim” fifty-fifty though they didn’t desire to. (Reverting a transaction isn’t possible amongst GreenAddress inward the kickoff place, of course.)
Wallet Security
Users maliciously reverting unconfirmed transactions convey us to the adjacent point.
To counter these risks, wallet software tin warn users on the receiving destination of a transaction if a transaction is flagged to potentially hold upwardly replaced.
Of all tested wallets, however, exclusively Mycelium (on Android) in addition to – indeed – GreenAddress (Chrome app) present such a flag. Both wallets clearly visualize a replace-by-fee enabled transaction every bit such, giving users the selection non to choose such a transaction until confirmed if they wish. (AirBitz land does it too, but I don’t have got the correct operating organization to exam this myself.)
[image 3]
Interestingly, Bitcoin Core doesn't flag for incoming opt-in replace-by-fee transactions, in addition to every bit such Bitcoin Core forks Bitcoin Classic, Bitcoin XT in addition to Bitcoin Unlimited don't either. Rather, these wallets only present both the master in addition to the replacement transaction every bit unconfirmed. Until i of these transactions makes it into a block, of course, at which signal the confirmed transaction is shown every bit confirmed - in addition to the conflicting transaction every bit rejected.
Blockchain (web), Bither (iOS 7), Blocktrail (iOS vii in addition to web), Breadwallet (iOS 7), Coinbase (web), Copay (iOS 7) in addition to Electrum (desktop) don't flag for replace-by-fee transactions either. Blocktrail, Bither in addition to Breadwallet only present both the master in addition to the boosted transactions every bit 2 dissimilar incoming transactions, piece Copay in addition to Coinbase ignore the latter. For Electrum, it depends on which Electrum server the wallet software connects to, but inward most cases it shows exclusively the newest transaction.
(When asked why their software doesn't flag for replace-by-fee transactions, both Bitcoin Core in addition to Electrum developers explained that unconfirmed transactions shouldn't hold upwardly trusted either way, in addition to a flagging organization could give users a imitation feel of security.)
Editors note: Shortly earlier publication, Bitcoin Core developers pointed out that an RBF-notification powerfulness hold upwardly added soon, later all.
While unable to exam it myself, Bitcoin Wallet (Android) applies yet to a greater extent than or less other strategy: it doesn't present replace-by-fee flagged transactions at all, unless in addition to until it has at to the lowest degree i confirmation.
(Bitcoin Wallet developer Andreas Schildbach told me adding a flagging organization inward the software would hold upwardly tricky, in addition to he believes this is the most responsible solution for now.)
Payment Processors
I tested the large 2 payment processors: BitPay in addition to Coinbase. This fourth dimension around, I didn't genuinely travail to supersede (“boost”) my transaction. I precisely wanted to come across how they'd handgrip the flag.
Perhaps unsurprisingly – CEO Stephen Pair supports opt-in replace-by-fee – BitPay seemed to handgrip replace-by-fee payments without whatever problems. Having paid for a pizza delivery through Bitcoin's biggest payment processor, the lodge was right away confirmed on-screen. As such, it didn't experience similar I was waiting likewise long for my transaction to come upwardly through.
It did, however, choose several minutes – seemingly until a block was institute – until I also received a confirmation email. Presumably this is because BitPay does wait “behind the screens” until a transaction is included inward a block, to brand sure they can't hold upwardly defrauded.
While it worked good for me, it did move out me wondering what would hand if the transaction had taken significantly longer to confirm. If that would have got meant I had to hold off longer for my pizza to arrive, a alarm powerfulness have got been inward place...
Coinbase did non handgrip my kickoff replace-by-fee transaction well: my payment for Reddit Gold, made several weeks ago, was non acknowledged at all. Not earlier it was included inward a block, in addition to non after it was included inward a block. After seeing the payment asking page fourth dimension out twice, the lodge was eventually canceled. (I had to e-mail Reddit to instruct my gold.)
However, a second, to a greater extent than recent travail suggests Coinbase has improved its service since: my Wikimedia donation was confirmed instantly. Moreover, a message popped upwardly telling me they’d hold off for a confirmation due to a depression fee. Wrong reason, but correct service.
[image 4]
Block Explorers
Finally, I did a quick circular to come across how dissimilar block explorers handgrip opt-in replace-by-fee transactions.
The kickoff block explorer I tested, Blocktrail, clearly visualizes replace-by-fee transactions. It was the exclusively block explorer that non exclusively flags a transaction when eligible for double-spends, it also warns users if a conflicting transaction is detected. And, i time that conflicting transaction is included inward a block, it's made clear that the replaced transaction was double-spent, in addition to won't confirm.
[image 5]
Blockchain.info does non flag replaceable transactions, in addition to instead precisely shows a transaction every bit unconfirmed. It's exclusively later a conflicting transaction is sent that Blockchain.info visualizes a banker's complaint alarm users of a potential double-spend, though soundless no lift of replace-by-fee. And, later a conflicting transaction is included inward a block, Blockchain.info issues no additional warning; it seems every bit if at that spot is soundless a small-scale risk the master transaction powerfulness confirm.
As for other block explorers ...
Much similar Blockchain.info, Blockcypher does non visualize a replace-by-fee flag, but it does present a double-spend alarm later a 2nd transaction is sent. BitPay's opened upwardly source block explorer insight.bitpay.com, bitcoinchain.com in addition to chain.so present exclusively the kickoff initial transaction, amongst no replace-by-fee flag.
The post GreenAddress Is First Bitcoin Wallet to Launch Replace-By-Fee Bitcoin Transactions; Miner Adoption Slow appeared kickoff on Bitcoin Magazine.
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