LONDON, Jan. 8, 2020 /PRNewswire/ -- Yesterday, the Canadian listed crypto mining giant TAAL, announced it was to lowering its mining transaction fees for the BSV network to support enterprise blockchain applications that generate high transaction volumes. In response, CoinGeek Mining has decided to follow suit and match these fee reductions:
- A reduction in the transaction acceptance fee (-blockmintxfee) from 1 satoshi/byte to 0.5 satoshis/byte.
- A reduction in the relay fee (-minrelaytxfee which is the minimum fee required for double spend protection and for relaying of a transaction) from 1 satoshi/byte to 0.25 satoshis/byte.
CoinGeek will regularly review these fee rates with respect to fiat equivalents in order to maintain a fiat stable transaction fee rate; this will provide the price predictability that enterprises want for their data applications.
Recently, Bitcoin SV (BSV) application development has exploded globally, including across Europe, Australia and China, to take advantage of BSV's greater data capacity and micropayments capability. Growing usage has led BSV to show consistently more transactions and consistently bigger average block size than BTC: https://coin.dance/, and recently surpass the Ethereum network on some days. BSV is also the only project that adheres to the original design of Bitcoin creator Satoshi Nakamoto. In short, BSV is Bitcoin.
Calvin Ayre, owner and founder of CoinGeek Mining, commented: "We are following TAAL in reducing these transaction fees in order to support long-term growth of applications which generate high volume transactions on the BSV blockchain. We are doing this in order to generate, and highlight, the ability of BSV to accommodate a huge volume of transactions to sustain blockchain profitability – for both miners and enterprise applications - in the years to come."
Additionally, CoinGeek Mining will follow TAAL's lead to increase the restrictive limit (inherited from Bitcoin Core) of unconfirmed transaction ancestors on BSV from 25 to 50. Although this change is unrelated to the reduced transaction fees, it has a similar goal to support big enterprise applications on BSV. A higher limit of 50 unconfirmed ancestors will enable business applications to create longer sets of chained transactions before they are mined in a block.
Precautions for BSV network participants
It should be noted that until a lower relay fee rate is widely adopted, it is NOT zero-confirmation safe to send transactions with a fee rate below the old default rate of 1 satoshi/byte. For transactions that involve two parties without trust, the fee rate should remain at 1 satoshi/byte until after the Genesis hard fork of the Bitcoin SV network (scheduled for February 4, 2020). Transactions that do not involve a counterparty (e.g. data transactions from applications like WeatherSV who negotiated BSV transaction fee deals directly with miners) can take advantage of the lower fee rates immediately.