Zebpay, the most widely utilized Bitcoin exchange and wallet platform in India, discovered that most Bitcoin wallets are utilizing inefficient methods of estimating Bitcoin fees, leading to higher fees for users. Zebpay, the most widely utilized Bitcoin exchange and wallet platform in India, discovered that most Bitcoin wallets are utilizing inefficient methods of estimating Bitcoin fees, leading to higher fees for users.
In an analytical column, the Zebpay team explained that Bitcoin exchanges and businesses tend to overpay Bitcoin fees on behalf of their users to prevent bad user experience and transactions from being stuck. Zebpay explained: “The cost of customer support in case of a stuck transaction is higher than the actual fees of transaction.
Other Bitcoin exchanges/businesses that use hosted wallets like us will try to pay higher fees competing with everyone to make sure their transaction goes through. This competition during a clogged mempool makes prediction of fees even more complicated adding to the uncertainty of block confirmations.” Consequently, users on many wallets pay higher transaction fees than necessary to ensure their transactions are included in a block.
Over the past few weeks, with the help of BitGo Engineer Jameson Lopp and Security Expert Andreas Antonopoulos, the Zebpay engineering and development teams focused on implementing three systems: slab-wise fees, batch transactions and Segregated Witness (SegWit). These changes ensure that small transactions require lower fees while larger transactions pay higher fees.
In countries like China, India and the Philippines that process billions of dollars in remittances every year, many use Bitcoin to make such payments. This results in small transactions being made on a regular basis. Read more from cointelegraph.com…
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