How much and to whom do the users pay cryptocurrency

Transaction Fees. How much and to whom do the users pay cryptocurrency?

A fee is charged by transferring cryptocurrencies from one wallet to another. The principle of paying additional fees is built similar to banking transactions. But the method of calculating fees is in the structure of the Blockchain network. Each cryptocurrency transaction must be approved by participants (miners). In order for the transfer of digital coins to succeed, miners must solve the necessary digital encrypted code containing the transaction data. The fee of this case is the remuneration of the miner who conducts this or that operation.

Participants use their equipment. The amount of a fee depends on the speed of the operation, but it is always paid by the sender of funds. Each financial transaction has a certain size. The better the size to reward ratio, the faster the transaction will be completed.

How is the fee calculated in the Bitcoin system?

Many users do not understand that every transfer of digital coins is subject to a fee. But the amount of the additional fee does not depend on the amount transferred. The fee is calculated in Satoshi for one byte of information. Each cryptocurrency transfer is a specific code that has a base size in bytes. For example, 1 Bitcoin can weigh 400 bytes. And 0.5 Bitcoin can weigh 200 bytes. All these payments are charged either automatically or manually by a user. For example, more than half of the wallets do not allow to independently determine the size of the fee in Satoshi per one byte.

All calculations are already incorporated in the algorithm. The user will only have to agree to the conditions if he keeps money in the particular service. But in some cases, the user specifies the fee for the transfer by himself. How quickly the transaction will be processed depends on its size. To get acquainted with the approximate amount of payments for transactions, just go to the site blockchain.info. There will be a list of recent transactions in the corresponding block. The commission is always indicated additionally.

On average, 1 portion of the fee is paid for every 1000 bytes of information. This is approximately 0.0005 BTC. Paying an additional fee is not necessary in some cases. But then the transaction processing will be delayed for several hours, days, or even weeks.

Why does a fee grow and who regulates it?

Bitcoin is a self-regulating structure that is adapted under market conditions. Users can not exclusively raise the size of additional fees for transactions. But individual services and wallets raise fees with the growth of their popularity. The principle of ordering the execution of transactions has never worked. Otherwise, it would not make sense for miners to mine coins. Therefore, a system of material incentives was developed.

Soon the introduction of SegWit is being planned. This is the system that increases the performance of the Bitcoin network in several times. The service will make it possible to partially unload the system and reduce potential additional fees.

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