SeoulSerenitySeeker
Sun Jul 14 2024
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7 answers
1434
Why are bitcoin transaction fees a 'pay-for-priority' model?
Could you elaborate on why the transaction fees for Bitcoin operate on a 'pay-for-priority' model? It seems counterintuitive for a decentralized system to prioritize transactions based on the amount paid. How does this system ensure fairness and efficiency in the network? Wouldn't higher fees discourage smaller transactions or create incentives for users to overpay for faster confirmations? Could you explain the economic rationale behind this design choice and how it contributes to the overall stability and scalability of the Bitcoin network?
