delvingbitcoin
Mempool Based Fee Estimation on Bitcoin Core
Posted on: April 2, 2024 00:43 UTC
The email presents an update to a previously discussed format, incorporating suggestions from ClaraSh.
This revision aims at enhancing the visual appeal and comprehensibility of the data representation. By extending the data range from the 5th percentile fee rate to the 75th percentile fee rate, the update provides a more comprehensive overview of transaction fees. The suggestion to employ a logarithmic scale for the y-axis is motivated by a desire to emphasize relative differences in fee rates rather than absolute numbers. This approach facilitates a clearer understanding of when one might be paying significantly more than necessary.
The discussion highlights two specific instances to illustrate the importance of this new scaling method. A comparison is made between an estimated fee rate of 150 satoshis per virtual byte (sat/vb) versus 75 sat/vb, marked by a blue spike, and an earlier overestimate where the rate was 50 sat/vb against 25 sat/vb, indicated by a yellow coloration. These examples underscore the argument that proportional differences in fee rates are more critical to users than the nominal difference. The emphasis on using a log scale aims to make these proportional discrepancies more apparent and understandable, thereby aiding users in making more informed decisions regarding transaction fees.