Why do fees not show up as transaction outputs? Where do transaction fees go? How do miners receive fees?
More about transaction fees can be found in these chapters:
https://github.com/bitcoinbook/bitcoinbook/blob/f8b883dcd4e3d1b9adf40fed59b7e898fbd9241f/ch06.asciidoc
https://github.com/bitcoinbook/bitcoinbook/blob/df1828b7205a5950a16a3182cf9b15421ee70658/ch10.asciidoc
This question is from the December monthly subscriber session, which took place on December 15th 2018. If you want early-access to talks and a chance to participate in the monthly live Q&As with Andreas, become a patron: https://www.patreon.com/aantonop
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Andreas M. Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and respected figures in bitcoin.
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He is the author of two books: “Mastering Bitcoin,” published by O’Reilly Media and considered the best technical guide to bitcoin; “The Internet of Money,” a book about why bitcoin matters.
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u got to start making some drawings…. really….
this explained in a white board "would be more" compreensible… 🙂
I learn something new with every video Andreas publishes.
Cool thanks, TIL
Why we have to pay fees ? We should have initial fee payed one time that is all .coinbase is get rich in our back.
Smashed the like
@aantonop As the mining reward is blocked from spending for some time after block is discovered does that also apply for the fees? Are those on “spend lock” too?
yes I definitely enjoyed the answer listening to it thrice
simple and clear as always
Would it be possible to implement a feature where a full node is selected randomly to receive a certain percentage of the fees? The goal being to encourage folks to run full nodes. How about LN nodes? And if so, would it contribute to the anti-fragility of bitcoin?
fascinating stuff. Can you discuss how a mining pool then distributes this reward to it's pack of miner's. I assume it is a centralized process where miners trust the pool leader to do it fairly. I was wondering if there is a way to write a contract where it automatically pays out the block reward as a proportion of hash rate to all contributors without having to trust the entity running the mining pool. Thanks.
This video is fantastic
I was just pondering this a few days ago. Thanks for the info.
Very good but you missed an opportunity. Unfortunately one of the biggest hurdles talking to people is their not understanding the purpose of the miner reward. It serves 2 purposes. 1) Distribute the bitcoins widely and 2) Secure the network. At the beginning of the experiment bitcoins were not worth much, so a large miner reward was justified. But if you subsidize something you tend to get more of it. The POW of the bitcoin network is incredible now because users are not paying it directly. Over time with the halvings, the free market will determine what the transactions fee's will be, and I bet it will be more than today. But that is not really a problem because of evolving second layer solutions.
Nice one
I remember attending a seminar with a Bitcoin / Blockchain expert from Deloitte who claimed that if your transaction is mined in a block that gets orphaned and does not help to produce the longest proof of work chain your fees are lost and you have to try to make the transaction again. When I called out on him he said that he is sure and that we should agree to disagree and discuss this after the event… He should have watched your video would have saved him an embarrassing moment 😛 I think it is fine if people who have bitcoin don't understand this but a consultant in that field should be a little better educated (:
Thanks, Andreas!