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Bitcoin [BTC] proponent explains the reason transaction fees is not in the block explorer

Priya

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Bitcoin proponent explains the reason transaction fees is not in the block explorer
Source: Unsplash

Andreas M Antonopoulos, the author of Mastering Bitcoin and a Bitcoin proponent, elucidated the reason Bitcoin transaction fee does not show up in the block explorer as a transaction output, during his recent Q&A session on Youtube. He also spoke about the where the payment is actually stored.

The author started by stating that the block explorer shows all the information except the transaction fees because the information is not included there. He added that a transaction fee does not include a specific output for fees and that fees are not explicitly a part of the transaction. Andreas further pointed two hurdles for including the transaction fees in the block explorer.

First, the miner’s address is required for output, and an output is needed in the transaction that can be redeemed by a miner. However, since there is no prior information on the miner, this is rendered impossible. Second, there would be an extra output in every transaction if fees were considered as one. So, if there are 4000 transactions in a block, then there would be 4000 extra output for transaction fees.

“Yet if the fees [of the transactions in that block] will all go to one miner [or mining pool], why do we need 4,000 outputs [Luckily], that is not how fees work.Fees are leftover, meaning you have inputs that bring a certain [amount of] value into a transaction, and then you have outputs that spend less than that.”

He went on to say:



“The difference, the [portion] that is funded by the inputs but isn’t spent by the outputs, the over-fund of inputs minus outputs, whatever is left over, is the fee. You make a fee in a bitcoin transaction by funding the transaction with inputs… and then spending less than the entire amount. Whatever is left over is the fee. It is implicit, it is not explicit.”

This was followed by the author speaking about where the public address that receives all the fees is, including the payment. Here, he stated that they are included in the coinbase with the block where the transaction is mined.

“If you look at your transaction in a block and at the coinbase transaction of that block…  the coinbase reward is 12.5 bitcoin. The coinbase transaction pays to a specific P2PKH, or it might be a different type of script, but usually it is a P2PKH. You can see which address the miner is [being paid] to, which is not the 12.5 bitcoin. They are [paid an amount like] 12.513621, 12.6, or 12.6253 [bitcoin]”

He further stated that the extra satoshis is the fees from all of the transactions included in the block.





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

Bitcoin [BTC] will take another 22 years to regain its all-time high, says research analyst

Akash Anand

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'Bitcoin [BTC] will take another 22 years to regain its all-time high', says research analyst
Source: Pixabay

Bitcoin [BTC]’s rise and fall has been a consistent event that has grabbed headlines in the cryptocurrency space. According to the latest financial analysis conducted by UBS research analyst Kevin Dennean, the fans of the cryptocurrency will have to wait for over 22 years to climb back to its earlier heights of $19,000- $20,000.

Dennean made these claims comparing the pattern of Bitcoin and the cryptosphere with the trends of other financial system crashes like the Dow Jones crash of 1929, the NASDAQ slide in 2000 and the Oil tumble of 2008. The UBS analyst pointed to how a lot of the cryptocurrency’s proponents stated that Bitcoin is en route to a bull surge because ‘other assets did that in the past’. He laid the foundation for the delayed rise of Bitcoin by saying:

“We’re struck by how long it took other asset bubbles to recover their peak levels (as long as 22 years for the Dow Jones Industrials) and how pedestrian the annualized returns from trough to the recovery often are.”

Dennean was also of the opinion that not every bubble that bursts recovers its old highs, taking the example of the Nikkei crash, which after 30 years of its fall, has still not managed to reach its earlier peak, currently trading at around half its all-time highs. The Japanese asset price bubble was an inflated economic bubble in the late 80s where the real estate and the stock market prices were greatly volatile. In 1992, the price bubble burst and Japan’s economic machine came to a standstill.



Another figure used by Dennean was the fact that all the asset classes, including Bitcoin, fell by 75 percent with Bitcoin breaching the 80 percent barrier. After the crash, only the Dow Jones and the NASDAQ provided a reprieve to users after rising back to its earlier highs.

At the time of writing, Bitcoin was trading for $5292 with a market cap of $93.423 million. The 24-hour trading volume was clocked at $12.985.





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