Satoshi Nakamoto predicted that Bitcoin should have dynamic fees to improve transaction latency

Rage Review: Dynamic charging can ensure faster Bitcoin transactions. As early as 2010, Satoshi Nakamoto wrote: "Free practices will delay the time for transactions to be included in the blockchain." Transaction delays have always been a concern for Bitcoin users, and these delays are mainly caused by the blockage of the Bitcoin internal network. Blockchain.info announced that it has introduced a new feature "Dynamic Transaction Fees" in its wallet. Blockchain.info claims that with this new feature, they will provide fast and reliable Bitcoin transaction confirmations, no matter how many users are using the Bitcoin network at the same time.

Translation: Height difference signal is full

Ideas born under pressure

Aleksandar Matanovic

District CEO and founder, Aleksandar Matanovic said: "I see this as a reaction to the recent issues facing the Bitcoin network, where the number of transactions has been increasing while the block size has remained the same, causing some delays. If the block size had increased on time, they would not have introduced a dynamic fee system, so this is a reactive response. However, I think it is a good decision, and sometimes good ideas are born out of high pressure and seemingly desperate situations. They could have increased the fee on every transaction. But they chose to only do it when necessary to ensure that users at a certain time, their transactions are faster and the transaction price is still the same as before. I hope to see other platforms introduce dynamic fee systems. Regardless of the block size, I think this approach is better than a fixed fee system."

Satoshi Nakamoto predicted dynamic fees

Christopher Franko

Christopher Franko, blockchain researcher and Expanse developer at Ribbit.me, said:

“The dynamic fee approach means that the transaction fee you need to pay is floating to ensure that your transaction is included in the next block, because those who pay a high fee rate have priority in being written to the blockchain. During peak congestion times, you pay a higher transaction fee than during low usage times. Users can pay a higher fee at any time to get a guarantee of being written to the blockchain. At present, it is more convenient for Zhang San to pay “just enough” instead of too much to ensure that the transaction is implemented.

Frankly, I'm surprised they didn't do this sooner. It's a good thing for blockchain users, knowing their transactions are quickly included in the blockchain. Other local clients like Armory and I think Core have already started doing this (I'm an Armory user). Because of the dynamic fee payment system, I rarely have to wait a block or two to be notified that my transaction has been included in the blockchain. Sometimes I pay a little higher than average fees, but I'm fine with that.”

Here’s what Satoshi said in 2010:

"Right now people manually control the fees with paytxfee. It would be easy to have software automatically look at recent blocks and decide if a fee is due. We are far from the threshold right now so we don't need that yet. We'll see how manual control works first, and if we get there it's fine. It's just that free transactions will delay the inclusion of transactions in the blockchain." - Satoshi Nakamoto (2010)

Dynamic fees are an evolving system that will certainly have a significant impact on the industry over time.