Sry if this query is a noob query, however i’m making an attempt to grasp Bitcoin at a deeper stage as a result of i really like the worth and safety it offers to the consumer. Lots of people say the “price of transaction” on bitcoin ist very excessive and wishes above 100$ price of electrical energy. From my understanding that cant be proper, as a result of i solely pay 0,50 $ for a transaction. My guess is that they calculate the full Power consumption of the bitcoin community together with bitcoin mining and divide that by the amout of transactions. Clearly thats a incorrect calculation as a result of a lot of the energy is used to mine new bitcoin and to not affirm the transactions(Is that asumption true?). My Questions now are: How a lot vitality does a transaction really price and would transactions nonetheless work if all miners would cease mining new bitcoins and simply stick with confirming transactions?
Additionally if somebody know an in depth Textual content about how a Bitcoin Transaction and Affirmation works, please ship me a hyperlink to it.
7 thoughts on “A query about Bitcoin Transactions”
The issuance of new btc is the reward for calculating and verifying the next block
Transactions and cost to mine are different, so technically any cost ascribed to a transaction is true, or false.
You can mine blocks without including any transactions, so transactions cost $0.
Transactions cost what I pay for them.
The block subsidy hides the true transaction cost, so the cost of a transaction is the cost of the block subsidy if you imagine a block with a single transaction.
There’s no real answer.
Mining new blocks secures all transactions ever made, not only the transactions of the last block. It secures the whole ledger in order to make it immutable. To apply the cost only on the last transactions is misleading.
The functional cost for a transaction (compiling the code, sending to the node and mempool for confirmation, miners mining that specific transaction’s block and posting that specific block to the blockchain) is a fraction of a watt.
Everything else around the system (the remaining of the mining efforts, nodes running around the world, people upgrading code in their rooms, etc.,)are for redundancy and security and general beneficial support to the bitcoin network.
This is not dissimilar to the legacy financial network, where if you measure all of the legacy financial network’s cost to run (servers, network, security and security guards, commuting employees to get to the bank, buildings around the world, etc.) Even ignoring the negative effects of the petrodollar system and its impact on the environment, bitcoin’s overall energy use has been shown to be a fraction (1%) of the legacy financial system.
Your 100$ calculation is based on some metric adding up the energy ALL miners use + ALL nodes use in a ten minute block time based on some (most) expensive/dirty residential electric rate……
It’s wrong for a number of reasons including it only requires 1 miner to “mine” the TX all the other ones are there as backups who’s presence makes the network geometrically more secure.
> detailed Text about how a Bitcoins Transaction and confirmation works
[Mining and Consensus](https://github.com/bitcoinbook/bitcoinbook/blob/develop/ch10.asciidoc)
Confirming transactions and creating new bitcoin is all done as part of the same mining process.
The primary purpose of mining is to combine transactions into new blocks and adding a “proof of work” hash, thus making transactions irreversible.
If you take out the proof work component,then the network uses no more total energy than any other computer network transferring data around. However you lose the security of the proof of work and the entire reason bitcoin exists.
So the energy isn’t used to “process” transactions, it’s used to secure the network and make transactions meaningful.
As a reward for their efforts, and a way of distributing new coins without any human decision making, miners are allowed to add a special transaction into a block they mine, called a “coinbase” transaction (not to be confused with the company Coinbase). This transaction is allowed to create a certain amount new bitcoin out of nowhere and the miners pay it to themselves. The miners also collect transaction fees from the transactions in their block.
This newly created amount (called the block subsidy) gets lower over time, and eventually runs out. But mining will still happen and miners will collect transaction fees.