diff options
| author | Bitcoin Error Log <bitcoinerrorlog@gmail.com> | 2024-04-14 08:09:51 -0700 |
|---|---|---|
| committer | bitcoindev <bitcoindev@googlegroups.com> | 2024-04-14 08:16:53 -0700 |
| commit | 68c00114ca147e5674d5bf7804273df1004789ac (patch) | |
| tree | 3fa8ca16afa78f5d531b274ee5c8213fa4dcf828 | |
| parent | 9c468028ed5aee6d0204e2f7a26b7bdd2c041aad (diff) | |
| download | pi-bitcoindev-68c00114ca147e5674d5bf7804273df1004789ac.tar.gz pi-bitcoindev-68c00114ca147e5674d5bf7804273df1004789ac.zip | |
[bitcoindev] Draft BIP for User-Defined Transaction Flags Policy & Strategy
| -rw-r--r-- | 32/02bbb0860c848ab379c7d664843092c7fe1e3a | 1009 |
1 files changed, 1009 insertions, 0 deletions
diff --git a/32/02bbb0860c848ab379c7d664843092c7fe1e3a b/32/02bbb0860c848ab379c7d664843092c7fe1e3a new file mode 100644 index 000000000..58f51807b --- /dev/null +++ b/32/02bbb0860c848ab379c7d664843092c7fe1e3a @@ -0,0 +1,1009 @@ +Delivery-date: Sun, 14 Apr 2024 08:16:53 -0700 +Received: from mail-yb1-f188.google.com ([209.85.219.188]) + by mail.fairlystable.org with esmtps (TLS1.3) tls TLS_ECDHE_RSA_WITH_AES_128_GCM_SHA256 + (Exim 4.94.2) + (envelope-from <bitcoindev+bncBCJ6NONR3AHRBXPG56YAMGQEDQJMQFQ@googlegroups.com>) + id 1rw1bA-0001qc-KU + for bitcoindev@gnusha.org; Sun, 14 Apr 2024 08:16:53 -0700 +Received: by mail-yb1-f188.google.com with SMTP id 3f1490d57ef6-dd1395fd1bfsf4216693276.0 + for <bitcoindev@gnusha.org>; Sun, 14 Apr 2024 08:16:52 -0700 (PDT) +DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; + d=googlegroups.com; s=20230601; t=1713107806; x=1713712606; darn=gnusha.org; + h=list-unsubscribe:list-subscribe:list-archive:list-help:list-post + :list-id:mailing-list:precedence:x-original-sender:mime-version + :subject:message-id:to:from:date:sender:from:to:cc:subject:date + :message-id:reply-to; + bh=96/MbssXwchVrzi+43l9jjNHgd9rYGuC4Bt0MOziXwE=; + b=NPdkBu4apFXuOyUxFYooy4WAZPFxzd2B8/jKTLJIstT9W90ZoUNzRqEkXFERP2o9FI + Cux+v+hkO1Ta+l47MuvwMCqEkPq4aGoc3z+p2agF96Z97g1TpABkIuXfYAxj3Ou3Y282 + BNvVvtA0V80S5/frFT1vdrb32uTnyHV5IWoi2VqM2MW38ET2hgFEJao9+ftjhTXjnO1Z + eLPLtdn/1UqzUE5jSoxNt8g1o2TmCks9AVvf2TstWcLUXJpQCmqUd5jzyNd66mdZSWfa + 1ICP5Eo34/iMy3fx2lqTbZwiEzuD3BhTw1EM8gbxqIxh5LR9au03ruc8w1CZoQJ3Gj86 + g9ag== +DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; + d=gmail.com; s=20230601; t=1713107806; x=1713712606; darn=gnusha.org; + h=list-unsubscribe:list-subscribe:list-archive:list-help:list-post + :list-id:mailing-list:precedence:x-original-sender:mime-version + :subject:message-id:to:from:date:from:to:cc:subject:date:message-id + :reply-to; + bh=96/MbssXwchVrzi+43l9jjNHgd9rYGuC4Bt0MOziXwE=; + b=Q9CQOiF4nu150oCiqrj2eE/euPxlcgDygkKVh248f6YUEBQcxnrtzfZsceXcADw0GV + 3dd5uxRjsKX2MfBGb+S21OVB4oJ9Rj/YAUg7slGnmD9oZKMikGyHDgqNKn+x79K5yKXK + +Ju/K77UL4o+s+pJwYWZR71430bfyEITemJZzbYNp2dCfS27z2Theb6H4FFaU5bu6M6+ + 8g7kVhQ1gVzbtw+lpK/11wiVZbS2WIzluku4NsDGsR6q28Oew6wUyx6CUNgqfCJoU8bH + K+2b+aR50sAQLHQI1VJKdtn6jYFaq1IGQoLwvgmnSUWULTHb2tcGKc0MZeexSF+NbLKA + YxwA== +X-Google-DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; + d=1e100.net; s=20230601; t=1713107806; x=1713712606; + h=list-unsubscribe:list-subscribe:list-archive:list-help:list-post + :list-id:mailing-list:precedence:x-original-sender:mime-version + :subject:message-id:to:from:date:x-beenthere:x-gm-message-state + :sender:from:to:cc:subject:date:message-id:reply-to; + bh=96/MbssXwchVrzi+43l9jjNHgd9rYGuC4Bt0MOziXwE=; + b=QSuhMJgGaWpJ0wVSOGr6kOMvT9dPhlDRPyMaekYbxh7EOuWlQXdljO1+C7hc3g7QPr + AAl4IDjUrvTZt6g5oxIdlFciKwqk7+WxBhwT5To4GLjFWlsEHJIlAnHWc+eCFEnXMBfz + xv+VCweIr6a69RM4MPBfx9BoBTahQQ8XCrCcNL0XNArdZJCFhrzXQRbvwlyoLz63mj/n + rITd28DZZW+W74l1ybYqYVc7N7wK+q33Yb26MUfWE3txWc74maQHf7+BdArw1UXXGU/Y + OOCCXwAsWkvBWbSj5p+Sl1c62tOsjpFXBUMTca65+colAxv5R4BbJPZeTTjoqnUqXrxQ + fypA== +Sender: bitcoindev@googlegroups.com +X-Forwarded-Encrypted: i=1; AJvYcCWM80eb2TZKnqKiaxY7lpouj0pzyaezTYlzxczoo9QE+tYgfmOxOEAeuwxvdReLBxjmMmSm/Cur6hwHSlMTvqmN8XQh91U= +X-Gm-Message-State: AOJu0YyK5FImA16gbfkHlyDLzFKrcPy9Y0yO/HRA0kqeF5Okp12sgc5j + 5h4tNKpAFX6zZ+4K2CMUQH9Jz5kXvHw/0B6symRnbpNMobNWdaY+ +X-Google-Smtp-Source: AGHT+IE1UrbCXKwO0Xpdy3zczpFEdCoElDLa/eztzMzEQKcNyRLf3LuvGx+isyTt7b0C2dfNTYY/TQ== +X-Received: by 2002:a25:9e0b:0:b0:de0:df15:b372 with SMTP id m11-20020a259e0b000000b00de0df15b372mr7080361ybq.63.1713107805920; + Sun, 14 Apr 2024 08:16:45 -0700 (PDT) +X-BeenThere: bitcoindev@googlegroups.com +Received: by 2002:a25:d047:0:b0:dcb:bfe0:81b8 with SMTP id h68-20020a25d047000000b00dcbbfe081b8ls167552ybg.0.-pod-prod-09-us; + Sun, 14 Apr 2024 08:16:44 -0700 (PDT) +X-Received: by 2002:a05:690c:6e01:b0:61a:bda3:a78c with SMTP id jb1-20020a05690c6e0100b0061abda3a78cmr587393ywb.0.1713107804832; + Sun, 14 Apr 2024 08:16:44 -0700 (PDT) +Received: by 2002:a05:690c:fd6:b0:615:6ba5:7389 with SMTP id 00721157ae682-61841905692ms7b3; + Sun, 14 Apr 2024 08:09:52 -0700 (PDT) +X-Received: by 2002:a81:4ed8:0:b0:618:6480:a4c9 with SMTP id c207-20020a814ed8000000b006186480a4c9mr2004780ywb.9.1713107391479; + Sun, 14 Apr 2024 08:09:51 -0700 (PDT) +Date: Sun, 14 Apr 2024 08:09:51 -0700 (PDT) +From: Bitcoin Error Log <bitcoinerrorlog@gmail.com> +To: Bitcoin Development Mailing List <bitcoindev@googlegroups.com> +Message-Id: <cc812488-9da0-4595-be3b-bcfd7ab41106n@googlegroups.com> +Subject: [bitcoindev] Draft BIP for User-Defined Transaction Flags Policy & Strategy +MIME-Version: 1.0 +Content-Type: multipart/mixed; + boundary="----=_Part_427350_1896543598.1713107391072" +X-Original-Sender: bitcoinerrorlog@gmail.com +Precedence: list +Mailing-list: list bitcoindev@googlegroups.com; contact bitcoindev+owners@googlegroups.com +List-ID: <bitcoindev.googlegroups.com> +X-Google-Group-Id: 786775582512 +List-Post: <https://groups.google.com/group/bitcoindev/post>, <mailto:bitcoindev@googlegroups.com> +List-Help: <https://groups.google.com/support/>, <mailto:bitcoindev+help@googlegroups.com> +List-Archive: <https://groups.google.com/group/bitcoindev +List-Subscribe: <https://groups.google.com/group/bitcoindev/subscribe>, <mailto:bitcoindev+subscribe@googlegroups.com> +List-Unsubscribe: <mailto:googlegroups-manage+786775582512+unsubscribe@googlegroups.com>, + <https://groups.google.com/group/bitcoindev/subscribe> +X-Spam-Score: -0.5 (/) + +------=_Part_427350_1896543598.1713107391072 +Content-Type: multipart/alternative; + boundary="----=_Part_427351_428296076.1713107391072" + +------=_Part_427351_428296076.1713107391072 +Content-Type: text/plain; charset="UTF-8" +Content-Transfer-Encoding: quoted-printable + +*Posted here:*=20 +https://github.com/BitcoinAndLightningLayerSpecs/balls/blob/main/balls-0013= +8.md + +*Full text here:* + +BIP: XXXX +Title: User-Defined Transaction Flags Policy & Strategy +Author: John Carvalho +Type: Standards Track +Created: Apr 15, 2024 +Status: Draft=20 +Abstract + +This BIP introduces a utility-optimized strategy for Bitcoin mempool policy= +=20 +with new transaction signaling mechanisms, including Do-Not-Replace (DNR)= +=20 +and Replace-by-Fee (RBF), to enhance control over transaction handling and= +=20 +improve the network's economic efficiency.=20 +Motivation + +Enhancing user autonomy and network efficiency through precise,=20 +user-defined transaction signals that integrate seamlessly with Bitcoin's= +=20 +decentralized nature and existing economic models.=20 +Specification Transaction Signals + =20 + -=20 + =20 + Do-Not-Replace (DNR): Ensures transactions are not replaced once=20 + broadcast. This flag is encoded using a specific bit in the transaction= +=E2=80=99s=20 + version field, similar to RBF, but with inverse logic. + -=20 + =20 + Replace-by-Fee (RBF): Allows the sender to signal that the transaction= +=20 + may be replaced by another transaction with a higher fee. This mechanism= + is=20 + used to increase the likelihood of a transaction being picked up by mine= +rs=20 + in conditions of high network congestion, ensuring timely processing.=20 + =20 +Encoding + +The new flag signal, DNR, could be encoded similarly to existing RBF flags,= +=20 +with complementary mempool handling and conflict-resolution logic for=20 +default local enforcement. + + +Rationale + +Addresses the need for predictable transaction handling while respecting=20 +the decentralized, incentive-driven nature of network participants. + +Note: This proposal only discusses subjective, arbitrary mempool policy and= +=20 +handling. It is assumed that any local policy that enforces preferred=20 +hardware limits is out of scope and remains separately necessary.=20 +Strategic Options for Mempool Evolution + +There are three strategic options for evolving the Bitcoin mempool=20 +management, where only one should be optimized: + + + -=20 + =20 + User-defined (The ideal, optimistic option): This approach involves=20 + creating and default-obeying various transaction flags like RBF and DNR = +to=20 + facilitate specific goals of transactors. The primary tradeoff is that= +=20 + these flags are suggestions and can be overridden by miners, which means= +=20 + they are not enforceable but serve as strong hints to improve transactio= +n=20 + predictability and network efficiency. + -=20 + -=20 + =20 + Node-defined (The chaotic, centralizing option): This strategy would=20 + encourage third-party mempool providers to implement their subjective=20 + preferences on transaction facilitation. The significant tradeoff here i= +s=20 + the potential fracturing of the mempool and private, mining-pool-centric= +=20 + inclusion requirements, which could lead to increased centralization and= +=20 + censorship. + -=20 + -=20 + =20 + Miner-defined (The rational, pessimistic option): The final strategy=20 + involves removing all policies and flags, allowing miners to decide base= +d=20 + on transaction fees or other out-of-band terms. This approach simplifies= +=20 + the network at the cost of significantly reducing the utility for users = +who=20 + may need special handling for their transactions.=20 + =20 +Arguments for User-Definition + +Option 1 is favored here because it provides a balanced approach that=20 +enhances user experience and network functionality without overly=20 +complicating the Bitcoin protocol or risking centralization. By=20 +standardizing flags that indicate user preferences, we can achieve greater= +=20 +harmony and utility within the Bitcoin network, supporting diverse user=20 +needs while maintaining decentralization.=20 + +More importantly, we may be able to prevent mempool fragmentation and=20 +privatization to miners and pools for direct transaction inclusion by=20 +intentionally supporting flags that better compete and match transaction=20 +use cases within the open mempool network instead of censoring them=20 +arbitrarily. + + +Economic Implications + +The introduction of these signals could influence transaction fee markets= +=20 +and network congestion patterns: + + -=20 + =20 + DNR potentially improves next-block fee competition and improves network= +=20 + throughput by providing clearer signals about transaction permanence and= +=20 + relevance. + -=20 + =20 + RBF allows for dynamic fee adjustments that can enhance the certainty of= +=20 + transaction confirmations during peak times, benefiting users who need= +=20 + timely processing.=20 + =20 +Do-Not-Replace (DNR) Use Cases + +DNR is valuable in scenarios where transaction finality is crucial upon=20 +submission, without the risk of later alterations due to increased fees.=20 +Here are some specific use cases:=20 + + -=20 + =20 + Point-of-Sale Transactions: + -=20 + =20 + Example: Retailers or service providers accepting Bitcoin in a=20 + face-to-face setting need transactions to be final immediately to pre= +vent=20 + fraud. + -=20 + =20 + Usage: By using the DNR flag, merchants can ensure that once a=20 + transaction is broadcast, it cannot be replaced, thereby securing the= +=20 + payment process at the point of sale. + -=20 + =20 + Wage Payments: + -=20 + =20 + Example: Employers paying salaries in Bitcoin require certainty that= +=20 + the transaction amounts cannot be altered once sent. + -=20 + =20 + Usage: DNR provides employers the confidence to execute payroll=20 + transactions knowing that the payments cannot be replaced or canceled= +,=20 + ensuring employees receive the exact intended amounts. + -=20 + =20 + Automated Payments for Services: + -=20 + =20 + Example: Subscription services where automated payments are scheduled= +=20 + and should not be subject to change once initiated. + -=20 + =20 + Usage: DNR can be applied to ensure that automated recurring payments= +=20 + are processed without the risk of being replaced, thus simplifying=20 + financial planning and contract enforcement.=20 + =20 +Replace-by-Fee (RBF) Use Cases + +RBF is essential for transactions where timing and confirmation speed are= +=20 +more critical than the immediacy of finality. Here are applicable scenarios= +: + + -=20 + =20 + High-Frequency Trading: + -=20 + =20 + Example: Traders on cryptocurrency exchanges who need to rapidly=20 + adjust their positions based on market conditions. + -=20 + =20 + Usage: RBF allows traders to increase the fee on a transaction if=20 + it's not getting confirmed quickly enough, enabling them to ensure ti= +mely=20 + executions in response to market movements. + -=20 + =20 + Emergency Service Payments: + -=20 + =20 + Example: Payments for time-sensitive services, such as premium fast= +=20 + delivery or emergency technical services. + -=20 + =20 + Usage: When quick service delivery is critical, RBF enables the=20 + sender to increase the transaction fee to speed up the confirmation= +=20 + process, ensuring that the transaction is prioritized by miners. + -=20 + =20 + Bidding in Auctions: + -=20 + =20 + Example: Participants in online auctions who need to ensure their=20 + payments go through before the auction closes. + -=20 + =20 + Usage: Auction participants can use RBF to adjust their transaction= +=20 + fees to outpace other transactions in times of network congestion, se= +curing=20 + their winning bids. + -=20 + =20 + Dynamic Fee Management for Wallets: + -=20 + =20 + Example: Users sending non-urgent transactions who want to minimize= +=20 + fees but are willing to increase them if network conditions change. + -=20 + =20 + Usage: RBF provides flexibility, allowing users to start with a lower= +=20 + fee and only increase it if the transaction confirmation is delayed,= +=20 + optimizing their transaction fee expenditures.=20 + =20 +Adoption and Transition Strategy & Requirements + +It is implicit, until now, that within this strategy is a requirement for= +=20 +Core and other implementations to abandon strategies within Option 2, by=20 +specifically removing and rejecting policy tools like mempoolfullrbf, or=20 +other attempts to overrule, filter, or otherwise filter and hamper the=20 +propagation of valid, non-destructive transactions. + +This proposal is presented to the community for feedback, focusing on=20 +gathering input from wallet developers, miners, and node operators to=20 +ensure broad support and understanding of the benefits and implications of= +=20 +these new transaction signals. + +--=20 +You received this message because you are subscribed to the Google Groups "= +Bitcoin Development Mailing List" group. +To unsubscribe from this group and stop receiving emails from it, send an e= +mail to bitcoindev+unsubscribe@googlegroups.com. +To view this discussion on the web visit https://groups.google.com/d/msgid/= +bitcoindev/cc812488-9da0-4595-be3b-bcfd7ab41106n%40googlegroups.com. + +------=_Part_427351_428296076.1713107391072 +Content-Type: text/html; charset="UTF-8" +Content-Transfer-Encoding: quoted-printable + +<b>Posted here:</b> <a href=3D"https://github.com/BitcoinAndLightningLayerS= +pecs/balls/blob/main/balls-00138.md">https://github.com/BitcoinAndLightning= +LayerSpecs/balls/blob/main/balls-00138.md</a><br /><div><br /></div><div><b= +>Full text here:</b></div><div><br /></div><div><p dir=3D"ltr" style=3D"lin= +e-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"font-s= +ize: 11pt; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-= +color: transparent; font-variant-numeric: normal; font-variant-east-asian: = +normal; font-variant-alternates: normal; font-variant-position: normal; ver= +tical-align: baseline; white-space-collapse: preserve;">BIP: XXXX</span><sp= +an style=3D"font-size: 11pt; font-family: Arial, sans-serif; color: rgb(0, = +0, 0); background-color: transparent; font-variant-numeric: normal; font-va= +riant-east-asian: normal; font-variant-alternates: normal; font-variant-pos= +ition: normal; vertical-align: baseline; white-space-collapse: preserve;"><= +br /></span><span style=3D"font-size: 11pt; font-family: Arial, sans-serif;= + color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: = +normal; font-variant-east-asian: normal; font-variant-alternates: normal; f= +ont-variant-position: normal; vertical-align: baseline; white-space-collaps= +e: preserve;">Title: User-Defined Transaction Flags Policy & Strategy</= +span><span style=3D"font-size: 11pt; font-family: Arial, sans-serif; color:= + rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal;= + font-variant-east-asian: normal; font-variant-alternates: normal; font-var= +iant-position: normal; vertical-align: baseline; white-space-collapse: pres= +erve;"><br /></span><span style=3D"font-size: 11pt; font-family: Arial, san= +s-serif; color: rgb(0, 0, 0); background-color: transparent; font-variant-n= +umeric: normal; font-variant-east-asian: normal; font-variant-alternates: n= +ormal; font-variant-position: normal; vertical-align: baseline; white-space= +-collapse: preserve;">Author: John Carvalho</span><span style=3D"font-size:= + 11pt; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-colo= +r: transparent; font-variant-numeric: normal; font-variant-east-asian: norm= +al; font-variant-alternates: normal; font-variant-position: normal; vertica= +l-align: baseline; white-space-collapse: preserve;"><br /></span><span styl= +e=3D"font-size: 11pt; font-family: Arial, sans-serif; color: rgb(0, 0, 0); = +background-color: transparent; font-variant-numeric: normal; font-variant-e= +ast-asian: normal; font-variant-alternates: normal; font-variant-position: = +normal; vertical-align: baseline; white-space-collapse: preserve;">Type: St= +andards Track</span><span style=3D"font-size: 11pt; font-family: Arial, san= +s-serif; color: rgb(0, 0, 0); background-color: transparent; font-variant-n= +umeric: normal; font-variant-east-asian: normal; font-variant-alternates: n= +ormal; font-variant-position: normal; vertical-align: baseline; white-space= +-collapse: preserve;"><br /></span><span style=3D"font-size: 11pt; font-fam= +ily: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent;= + font-variant-numeric: normal; font-variant-east-asian: normal; font-varian= +t-alternates: normal; font-variant-position: normal; vertical-align: baseli= +ne; white-space-collapse: preserve;">Created: Apr 15, 2024</span><span styl= +e=3D"font-size: 11pt; font-family: Arial, sans-serif; color: rgb(0, 0, 0); = +background-color: transparent; font-variant-numeric: normal; font-variant-e= +ast-asian: normal; font-variant-alternates: normal; font-variant-position: = +normal; vertical-align: baseline; white-space-collapse: preserve;"><br /></= +span><span style=3D"font-size: 11pt; font-family: Arial, sans-serif; color:= + rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal;= + font-variant-east-asian: normal; font-variant-alternates: normal; font-var= +iant-position: normal; vertical-align: baseline; white-space-collapse: pres= +erve;">Status: Draft + +</span></p><span dir=3D"ltr" style=3D"line-height: 1.38; margin-top: 16pt; = +margin-bottom: 4pt;"><span style=3D"font-size: 14pt; font-family: Arial, sa= +ns-serif; color: rgb(67, 67, 67); background-color: transparent; font-weigh= +t: 700; font-variant-numeric: normal; font-variant-east-asian: normal; font= +-variant-alternates: normal; font-variant-position: normal; vertical-align:= + baseline; white-space-collapse: preserve;">Abstract</span></span><p dir=3D= +"ltr" style=3D"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;"><sp= +an style=3D"font-size: 11pt; font-family: Arial, sans-serif; color: rgb(0, = +0, 0); background-color: transparent; font-variant-numeric: normal; font-va= +riant-east-asian: normal; font-variant-alternates: normal; font-variant-pos= +ition: normal; vertical-align: baseline; white-space-collapse: preserve;">T= +his BIP introduces a utility-optimized strategy for Bitcoin mempool policy = +with new transaction signaling mechanisms, including Do-Not-Replace (DNR) a= +nd Replace-by-Fee (RBF), to enhance control over transaction handling and i= +mprove the network's economic efficiency. + +</span></p><span dir=3D"ltr" style=3D"line-height: 1.38; margin-top: 16pt; = +margin-bottom: 4pt;"><span style=3D"font-size: 14pt; font-family: Arial, sa= +ns-serif; color: rgb(67, 67, 67); background-color: transparent; font-weigh= +t: 700; font-variant-numeric: normal; font-variant-east-asian: normal; font= +-variant-alternates: normal; font-variant-position: normal; vertical-align:= + baseline; white-space-collapse: preserve;">Motivation</span></span><p dir= +=3D"ltr" style=3D"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;">= +<span style=3D"font-size: 11pt; font-family: Arial, sans-serif; color: rgb(= +0, 0, 0); background-color: transparent; font-variant-numeric: normal; font= +-variant-east-asian: normal; font-variant-alternates: normal; font-variant-= +position: normal; vertical-align: baseline; white-space-collapse: preserve;= +">Enhancing user autonomy and network efficiency through precise, user-defi= +ned transaction signals that integrate seamlessly with Bitcoin's decentrali= +zed nature and existing economic models. + +</span></p><span dir=3D"ltr" style=3D"line-height: 1.38; margin-top: 16pt; = +margin-bottom: 4pt;"><span style=3D"font-size: 14pt; font-family: Arial, sa= +ns-serif; color: rgb(67, 67, 67); background-color: transparent; font-weigh= +t: 700; font-variant-numeric: normal; font-variant-east-asian: normal; font= +-variant-alternates: normal; font-variant-position: normal; vertical-align:= + baseline; white-space-collapse: preserve;">Specification +</span></span><span dir=3D"ltr" style=3D"line-height: 1.38; margin-top: 14p= +t; margin-bottom: 4pt;"><span style=3D"font-size: 12pt; font-family: Arial,= + sans-serif; color: rgb(102, 102, 102); background-color: transparent; font= +-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alt= +ernates: normal; font-variant-position: normal; vertical-align: baseline; w= +hite-space-collapse: preserve;">Transaction Signals</span></span><ul style= +=3D"margin-top: 0px; margin-bottom: 0px; padding-inline-start: 48px;"><li d= +ir=3D"ltr" style=3D"list-style-type: disc; font-size: 11pt; font-family: Ar= +ial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-v= +ariant-numeric: normal; font-variant-east-asian: normal; font-variant-alter= +nates: normal; font-variant-position: normal; vertical-align: baseline; whi= +te-space: pre;"><p dir=3D"ltr" style=3D"line-height: 1.38; margin-top: 0pt;= + margin-bottom: 0pt;" role=3D"presentation"><span style=3D"font-size: 11pt;= + background-color: transparent; font-weight: 700; font-variant-numeric: nor= +mal; font-variant-east-asian: normal; font-variant-alternates: normal; font= +-variant-position: normal; vertical-align: baseline; text-wrap: wrap;">Do-N= +ot-Replace (DNR)</span><span style=3D"font-size: 11pt; background-color: tr= +ansparent; font-variant-numeric: normal; font-variant-east-asian: normal; f= +ont-variant-alternates: normal; font-variant-position: normal; vertical-ali= +gn: baseline; text-wrap: wrap;">: Ensures transactions are not replaced onc= +e broadcast. This flag is encoded using a specific bit in the transaction= +=E2=80=99s version field, similar to RBF, but with inverse logic.</span></p= +></li><li dir=3D"ltr" style=3D"list-style-type: disc; font-size: 11pt; font= +-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transpar= +ent; font-variant-numeric: normal; font-variant-east-asian: normal; font-va= +riant-alternates: normal; font-variant-position: normal; vertical-align: ba= +seline; white-space: pre;"><p dir=3D"ltr" style=3D"line-height: 1.38; margi= +n-top: 0pt; margin-bottom: 0pt;" role=3D"presentation"><span style=3D"font-= +size: 11pt; background-color: transparent; font-weight: 700; font-variant-n= +umeric: normal; font-variant-east-asian: normal; font-variant-alternates: n= +ormal; font-variant-position: normal; vertical-align: baseline; text-wrap: = +wrap;">Replace-by-Fee (RBF): </span><span style=3D"font-size: 11pt; backgro= +und-color: transparent; font-variant-numeric: normal; font-variant-east-asi= +an: normal; font-variant-alternates: normal; font-variant-position: normal;= + vertical-align: baseline; text-wrap: wrap;">Allows the sender to signal th= +at the transaction may be replaced by another transaction with a higher fee= +. This mechanism is used to increase the likelihood of a transaction being = +picked up by miners in conditions of high network congestion, ensuring time= +ly processing. + +</span></p></li></ul><span dir=3D"ltr" style=3D"line-height: 1.38; margin-t= +op: 14pt; margin-bottom: 4pt;"><span style=3D"font-size: 12pt; font-family:= + Arial, sans-serif; color: rgb(102, 102, 102); background-color: transparen= +t; font-variant-numeric: normal; font-variant-east-asian: normal; font-vari= +ant-alternates: normal; font-variant-position: normal; vertical-align: base= +line; white-space-collapse: preserve;">Encoding</span></span><p dir=3D"ltr"= + style=3D"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;"><span st= +yle=3D"font-size: 11pt; font-family: Arial, sans-serif; color: rgb(0, 0, 0)= +; background-color: transparent; font-variant-numeric: normal; font-variant= +-east-asian: normal; font-variant-alternates: normal; font-variant-position= +: normal; vertical-align: baseline; white-space-collapse: preserve;">The ne= +w flag signal, DNR, could be encoded similarly to existing RBF flags, with = +complementary mempool handling and conflict-resolution logic for default lo= +cal enforcement.</span></p><p dir=3D"ltr" style=3D"line-height: 1.38; margi= +n-top: 0pt; margin-bottom: 0pt;"><span style=3D"font-size: 11pt; font-famil= +y: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; f= +ont-variant-numeric: normal; font-variant-east-asian: normal; font-variant-= +alternates: normal; font-variant-position: normal; vertical-align: baseline= +; white-space-collapse: preserve;"><br /></span></p><span dir=3D"ltr" style= +=3D"line-height: 1.38; margin-top: 16pt; margin-bottom: 4pt;"><span style= +=3D"font-size: 14pt; font-family: Arial, sans-serif; color: rgb(67, 67, 67)= +; background-color: transparent; font-weight: 700; font-variant-numeric: no= +rmal; font-variant-east-asian: normal; font-variant-alternates: normal; fon= +t-variant-position: normal; vertical-align: baseline; white-space-collapse:= + preserve;">Rationale</span></span><p dir=3D"ltr" style=3D"line-height: 1.3= +8; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"font-size: 11pt; fo= +nt-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transp= +arent; font-variant-numeric: normal; font-variant-east-asian: normal; font-= +variant-alternates: normal; font-variant-position: normal; vertical-align: = +baseline; white-space-collapse: preserve;">Addresses the need for predictab= +le transaction handling while respecting the decentralized, incentive-drive= +n nature of network participants.</span></p><br /><p dir=3D"ltr" style=3D"l= +ine-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"font= +-size: 11pt; font-family: Arial, sans-serif; color: rgb(0, 0, 0); backgroun= +d-color: transparent; font-style: italic; font-variant-numeric: normal; fon= +t-variant-east-asian: normal; font-variant-alternates: normal; font-variant= +-position: normal; vertical-align: baseline; white-space-collapse: preserve= +;">Note: This proposal only discusses subjective, arbitrary mempool policy = +and handling. It is assumed that any local policy that enforces preferred h= +ardware limits is out of scope and remains separately necessary. + +</span></p><span dir=3D"ltr" style=3D"line-height: 1.38; margin-top: 14pt; = +margin-bottom: 4pt;"><span style=3D"font-size: 12pt; font-family: Arial, sa= +ns-serif; color: rgb(102, 102, 102); background-color: transparent; font-va= +riant-numeric: normal; font-variant-east-asian: normal; font-variant-altern= +ates: normal; font-variant-position: normal; vertical-align: baseline; whit= +e-space-collapse: preserve;">Strategic Options for Mempool Evolution</span>= +</span><p dir=3D"ltr" style=3D"line-height: 1.38; margin-top: 0pt; margin-b= +ottom: 0pt;"><span style=3D"font-size: 11pt; font-family: Arial, sans-serif= +; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric:= + normal; font-variant-east-asian: normal; font-variant-alternates: normal; = +font-variant-position: normal; vertical-align: baseline; white-space-collap= +se: preserve;">There are three strategic options for evolving the Bitcoin m= +empool management, where only one should be optimized:</span></p><br /><ul = +style=3D"margin-top: 0px; margin-bottom: 0px; padding-inline-start: 48px;">= +<li dir=3D"ltr" style=3D"list-style-type: none; font-size: 11pt; font-famil= +y: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; f= +ont-variant-numeric: normal; font-variant-east-asian: normal; font-variant-= +alternates: normal; font-variant-position: normal; vertical-align: baseline= +; white-space: pre;"><p dir=3D"ltr" style=3D"line-height: 1.38; margin-top:= + 0pt; margin-bottom: 0pt;" role=3D"presentation"><span style=3D"font-size: = +11pt; background-color: transparent; font-weight: 700; font-variant-numeric= +: normal; font-variant-east-asian: normal; font-variant-alternates: normal;= + font-variant-position: normal; vertical-align: baseline; text-wrap: wrap;"= +>User-defined (The ideal, optimistic option): </span><span style=3D"font-si= +ze: 11pt; background-color: transparent; font-variant-numeric: normal; font= +-variant-east-asian: normal; font-variant-alternates: normal; font-variant-= +position: normal; vertical-align: baseline; text-wrap: wrap;">This approach= + involves creating and default-obeying various transaction flags like RBF a= +nd DNR to facilitate specific goals of transactors. The primary tradeoff is= + that these flags are suggestions and can be overridden by miners, which me= +ans they are not enforceable but serve as strong hints to improve transacti= +on predictability and network efficiency.</span></p></li><li dir=3D"ltr" st= +yle=3D"list-style-type: none; font-size: 11pt; font-family: Arial, sans-ser= +if; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeri= +c: normal; font-variant-east-asian: normal; font-variant-alternates: normal= +; font-variant-position: normal; vertical-align: baseline; white-space: pre= +;"><br /></li><li dir=3D"ltr" style=3D"list-style-type: none; font-size: 11= +pt; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: = +transparent; font-variant-numeric: normal; font-variant-east-asian: normal;= + font-variant-alternates: normal; font-variant-position: normal; vertical-a= +lign: baseline; white-space: pre;"><p dir=3D"ltr" style=3D"line-height: 1.3= +8; margin-top: 0pt; margin-bottom: 0pt;" role=3D"presentation"><span style= +=3D"font-size: 11pt; background-color: transparent; font-weight: 700; font-= +variant-numeric: normal; font-variant-east-asian: normal; font-variant-alte= +rnates: normal; font-variant-position: normal; vertical-align: baseline; te= +xt-wrap: wrap;">Node-defined (The chaotic, centralizing option): </span><sp= +an style=3D"font-size: 11pt; background-color: transparent; font-variant-nu= +meric: normal; font-variant-east-asian: normal; font-variant-alternates: no= +rmal; font-variant-position: normal; vertical-align: baseline; text-wrap: w= +rap;">This strategy would encourage third-party mempool providers to implem= +ent their subjective preferences on transaction facilitation. The significa= +nt tradeoff here is the potential fracturing of the mempool and private, mi= +ning-pool-centric inclusion requirements, which could lead to increased cen= +tralization and censorship.</span></p></li><li dir=3D"ltr" style=3D"list-st= +yle-type: none; font-size: 11pt; font-family: Arial, sans-serif; color: rgb= +(0, 0, 0); background-color: transparent; font-variant-numeric: normal; fon= +t-variant-east-asian: normal; font-variant-alternates: normal; font-variant= +-position: normal; vertical-align: baseline; white-space: pre;"><br /></li>= +<li dir=3D"ltr" style=3D"list-style-type: none; font-size: 11pt; font-famil= +y: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; f= +ont-variant-numeric: normal; font-variant-east-asian: normal; font-variant-= +alternates: normal; font-variant-position: normal; vertical-align: baseline= +; white-space: pre;"><p dir=3D"ltr" style=3D"line-height: 1.38; margin-top:= + 0pt; margin-bottom: 0pt;" role=3D"presentation"><span style=3D"font-size: = +11pt; background-color: transparent; font-weight: 700; font-variant-numeric= +: normal; font-variant-east-asian: normal; font-variant-alternates: normal;= + font-variant-position: normal; vertical-align: baseline; text-wrap: wrap;"= +>Miner-defined (The rational, pessimistic option): </span><span style=3D"fo= +nt-size: 11pt; background-color: transparent; font-variant-numeric: normal;= + font-variant-east-asian: normal; font-variant-alternates: normal; font-var= +iant-position: normal; vertical-align: baseline; text-wrap: wrap;">The fina= +l strategy involves removing all policies and flags, allowing miners to dec= +ide based on transaction fees or other out-of-band terms. This approach sim= +plifies the network at the cost of significantly reducing the utility for u= +sers who may need special handling for their transactions. + +</span></p></li></ul><span dir=3D"ltr" style=3D"line-height: 1.38; margin-t= +op: 14pt; margin-bottom: 4pt;"><span style=3D"font-size: 12pt; font-family:= + Arial, sans-serif; color: rgb(102, 102, 102); background-color: transparen= +t; font-variant-numeric: normal; font-variant-east-asian: normal; font-vari= +ant-alternates: normal; font-variant-position: normal; vertical-align: base= +line; white-space-collapse: preserve;">Arguments for User-Definition</span>= +</span><p dir=3D"ltr" style=3D"line-height: 1.38; margin-top: 0pt; margin-b= +ottom: 0pt;"><span style=3D"font-size: 11pt; font-family: Arial, sans-serif= +; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric:= + normal; font-variant-east-asian: normal; font-variant-alternates: normal; = +font-variant-position: normal; vertical-align: baseline; white-space-collap= +se: preserve;">Option 1 is favored here because it provides a balanced appr= +oach that enhances user experience and network functionality without overly= + complicating the Bitcoin protocol or risking centralization. By standardiz= +ing flags that indicate user preferences, we can achieve greater harmony an= +d utility within the Bitcoin network, supporting diverse user needs while m= +aintaining decentralization.=C2=A0</span></p><br /><p dir=3D"ltr" style=3D"= +line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"fon= +t-size: 11pt; font-family: Arial, sans-serif; color: rgb(0, 0, 0); backgrou= +nd-color: transparent; font-variant-numeric: normal; font-variant-east-asia= +n: normal; font-variant-alternates: normal; font-variant-position: normal; = +vertical-align: baseline; white-space-collapse: preserve;">More importantly= +, we may be able to prevent mempool fragmentation and privatization to mine= +rs and pools for direct transaction inclusion by intentionally supporting f= +lags that better compete and match transaction use cases within the open me= +mpool network instead of censoring them arbitrarily.</span></p><p dir=3D"lt= +r" style=3D"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;"><span = +style=3D"font-size: 11pt; font-family: Arial, sans-serif; color: rgb(0, 0, = +0); background-color: transparent; font-variant-numeric: normal; font-varia= +nt-east-asian: normal; font-variant-alternates: normal; font-variant-positi= +on: normal; vertical-align: baseline; white-space-collapse: preserve;"><br = +/></span></p><span dir=3D"ltr" style=3D"line-height: 1.38; margin-top: 14pt= +; margin-bottom: 4pt;"><span style=3D"font-size: 12pt; font-family: Arial, = +sans-serif; color: rgb(102, 102, 102); background-color: transparent; font-= +variant-numeric: normal; font-variant-east-asian: normal; font-variant-alte= +rnates: normal; font-variant-position: normal; vertical-align: baseline; wh= +ite-space-collapse: preserve;">Economic Implications</span></span><p dir=3D= +"ltr" style=3D"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;"><sp= +an style=3D"font-size: 11pt; font-family: Arial, sans-serif; color: rgb(0, = +0, 0); background-color: transparent; font-variant-numeric: normal; font-va= +riant-east-asian: normal; font-variant-alternates: normal; font-variant-pos= +ition: normal; vertical-align: baseline; white-space-collapse: preserve;">T= +he introduction of these signals could influence transaction fee markets an= +d network congestion patterns:</span></p><ul style=3D"margin-top: 0px; marg= +in-bottom: 0px; padding-inline-start: 48px;"><li dir=3D"ltr" style=3D"list-= +style-type: disc; font-size: 11pt; font-family: Arial, sans-serif; color: r= +gb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; f= +ont-variant-east-asian: normal; font-variant-alternates: normal; font-varia= +nt-position: normal; vertical-align: baseline; white-space: pre;"><p dir=3D= +"ltr" style=3D"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;" rol= +e=3D"presentation"><span style=3D"font-size: 11pt; background-color: transp= +arent; font-variant-numeric: normal; font-variant-east-asian: normal; font-= +variant-alternates: normal; font-variant-position: normal; vertical-align: = +baseline; text-wrap: wrap;">DNR potentially improves next-block fee competi= +tion and improves network throughput by providing clearer signals about tra= +nsaction permanence and relevance.</span></p></li><li dir=3D"ltr" style=3D"= +list-style-type: disc; font-size: 11pt; font-family: Arial, sans-serif; col= +or: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: norm= +al; font-variant-east-asian: normal; font-variant-alternates: normal; font-= +variant-position: normal; vertical-align: baseline; white-space: pre;"><p d= +ir=3D"ltr" style=3D"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;= +" role=3D"presentation"><span style=3D"font-size: 11pt; background-color: t= +ransparent; font-variant-numeric: normal; font-variant-east-asian: normal; = +font-variant-alternates: normal; font-variant-position: normal; vertical-al= +ign: baseline; text-wrap: wrap;">RBF allows for dynamic fee adjustments tha= +t can enhance the certainty of transaction confirmations during peak times,= + benefiting users who need timely processing. + +</span></p></li></ul><span dir=3D"ltr" style=3D"line-height: 1.38; margin-t= +op: 16pt; margin-bottom: 4pt;"><span style=3D"font-size: 14pt; font-family:= + Arial, sans-serif; color: rgb(67, 67, 67); background-color: transparent; = +font-weight: 700; font-variant-numeric: normal; font-variant-east-asian: no= +rmal; font-variant-alternates: normal; font-variant-position: normal; verti= +cal-align: baseline; white-space-collapse: preserve;">Do-Not-Replace (DNR) = +Use Cases</span></span><p dir=3D"ltr" style=3D"line-height: 1.38; margin-to= +p: 0pt; margin-bottom: 0pt;"><span style=3D"font-size: 11pt; font-family: A= +rial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-= +variant-numeric: normal; font-variant-east-asian: normal; font-variant-alte= +rnates: normal; font-variant-position: normal; vertical-align: baseline; wh= +ite-space-collapse: preserve;">DNR is valuable in scenarios where transacti= +on finality is crucial upon submission, without the risk of later alteratio= +ns due to increased fees. Here are some specific use cases: + +</span></p><ul style=3D"margin-top: 0px; margin-bottom: 0px; padding-inline= +-start: 48px;"><li dir=3D"ltr" style=3D"list-style-type: disc; font-size: 1= +1pt; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color:= + transparent; font-variant-numeric: normal; font-variant-east-asian: normal= +; font-variant-alternates: normal; font-variant-position: normal; vertical-= +align: baseline; white-space: pre;"><p dir=3D"ltr" style=3D"line-height: 1.= +38; margin-top: 0pt; margin-bottom: 0pt;" role=3D"presentation"><span style= +=3D"font-size: 11pt; background-color: transparent; font-variant-numeric: n= +ormal; font-variant-east-asian: normal; font-variant-alternates: normal; fo= +nt-variant-position: normal; vertical-align: baseline; text-wrap: wrap;">Po= +int-of-Sale Transactions:</span></p><ul style=3D"margin-top: 0px; margin-bo= +ttom: 0px; padding-inline-start: 48px;"><li dir=3D"ltr" style=3D"list-style= +-type: disc; font-size: 11pt; font-family: Arial, sans-serif; color: rgb(0,= + 0, 0); background-color: transparent; font-variant-numeric: normal; font-v= +ariant-east-asian: normal; font-variant-alternates: normal; font-variant-po= +sition: normal; vertical-align: baseline; white-space: pre;"><p dir=3D"ltr"= + style=3D"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;" role=3D"= +presentation"><span style=3D"font-size: 11pt; background-color: transparent= +; font-variant-numeric: normal; font-variant-east-asian: normal; font-varia= +nt-alternates: normal; font-variant-position: normal; vertical-align: basel= +ine; text-wrap: wrap;">Example: Retailers or service providers accepting Bi= +tcoin in a face-to-face setting need transactions to be final immediately t= +o prevent fraud.</span></p></li><li dir=3D"ltr" style=3D"list-style-type: d= +isc; font-size: 11pt; font-family: Arial, sans-serif; color: rgb(0, 0, 0); = +background-color: transparent; font-variant-numeric: normal; font-variant-e= +ast-asian: normal; font-variant-alternates: normal; font-variant-position: = +normal; vertical-align: baseline; white-space: pre;"><p dir=3D"ltr" style= +=3D"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;" role=3D"presen= +tation"><span style=3D"font-size: 11pt; background-color: transparent; font= +-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alt= +ernates: normal; font-variant-position: normal; vertical-align: baseline; t= +ext-wrap: wrap;">Usage: By using the DNR flag, merchants can ensure that on= +ce a transaction is broadcast, it cannot be replaced, thereby securing the = +payment process at the point of sale.</span></p></li></ul></li><li dir=3D"l= +tr" style=3D"list-style-type: disc; font-size: 11pt; font-family: Arial, sa= +ns-serif; color: rgb(0, 0, 0); background-color: transparent; font-variant-= +numeric: normal; font-variant-east-asian: normal; font-variant-alternates: = +normal; font-variant-position: normal; vertical-align: baseline; white-spac= +e: pre;"><p dir=3D"ltr" style=3D"line-height: 1.38; margin-top: 0pt; margin= +-bottom: 0pt;" role=3D"presentation"><span style=3D"font-size: 11pt; backgr= +ound-color: transparent; font-variant-numeric: normal; font-variant-east-as= +ian: normal; font-variant-alternates: normal; font-variant-position: normal= +; vertical-align: baseline; text-wrap: wrap;">Wage Payments:</span></p><ul = +style=3D"margin-top: 0px; margin-bottom: 0px; padding-inline-start: 48px;">= +<li dir=3D"ltr" style=3D"list-style-type: disc; font-size: 11pt; font-famil= +y: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; f= +ont-variant-numeric: normal; font-variant-east-asian: normal; font-variant-= +alternates: normal; font-variant-position: normal; vertical-align: baseline= +; white-space: pre;"><p dir=3D"ltr" style=3D"line-height: 1.38; margin-top:= + 0pt; margin-bottom: 0pt;" role=3D"presentation"><span style=3D"font-size: = +11pt; background-color: transparent; font-variant-numeric: normal; font-var= +iant-east-asian: normal; font-variant-alternates: normal; font-variant-posi= +tion: normal; vertical-align: baseline; text-wrap: wrap;">Example: Employer= +s paying salaries in Bitcoin require certainty that the transaction amounts= + cannot be altered once sent.</span></p></li><li dir=3D"ltr" style=3D"list-= +style-type: disc; font-size: 11pt; font-family: Arial, sans-serif; color: r= +gb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; f= +ont-variant-east-asian: normal; font-variant-alternates: normal; font-varia= +nt-position: normal; vertical-align: baseline; white-space: pre;"><p dir=3D= +"ltr" style=3D"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;" rol= +e=3D"presentation"><span style=3D"font-size: 11pt; background-color: transp= +arent; font-variant-numeric: normal; font-variant-east-asian: normal; font-= +variant-alternates: normal; font-variant-position: normal; vertical-align: = +baseline; text-wrap: wrap;">Usage: DNR provides employers the confidence to= + execute payroll transactions knowing that the payments cannot be replaced = +or canceled, ensuring employees receive the exact intended amounts.</span><= +/p></li></ul></li><li dir=3D"ltr" style=3D"list-style-type: disc; font-size= +: 11pt; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-col= +or: transparent; font-variant-numeric: normal; font-variant-east-asian: nor= +mal; font-variant-alternates: normal; font-variant-position: normal; vertic= +al-align: baseline; white-space: pre;"><p dir=3D"ltr" style=3D"line-height:= + 1.38; margin-top: 0pt; margin-bottom: 0pt;" role=3D"presentation"><span st= +yle=3D"font-size: 11pt; background-color: transparent; font-variant-numeric= +: normal; font-variant-east-asian: normal; font-variant-alternates: normal;= + font-variant-position: normal; vertical-align: baseline; text-wrap: wrap;"= +>Automated Payments for Services:</span></p><ul style=3D"margin-top: 0px; m= +argin-bottom: 0px; padding-inline-start: 48px;"><li dir=3D"ltr" style=3D"li= +st-style-type: disc; font-size: 11pt; font-family: Arial, sans-serif; color= +: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal= +; font-variant-east-asian: normal; font-variant-alternates: normal; font-va= +riant-position: normal; vertical-align: baseline; white-space: pre;"><p dir= +=3D"ltr" style=3D"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;" = +role=3D"presentation"><span style=3D"font-size: 11pt; background-color: tra= +nsparent; font-variant-numeric: normal; font-variant-east-asian: normal; fo= +nt-variant-alternates: normal; font-variant-position: normal; vertical-alig= +n: baseline; text-wrap: wrap;">Example: Subscription services where automat= +ed payments are scheduled and should not be subject to change once initiate= +d.</span></p></li><li dir=3D"ltr" style=3D"list-style-type: disc; font-size= +: 11pt; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-col= +or: transparent; font-variant-numeric: normal; font-variant-east-asian: nor= +mal; font-variant-alternates: normal; font-variant-position: normal; vertic= +al-align: baseline; white-space: pre;"><p dir=3D"ltr" style=3D"line-height:= + 1.38; margin-top: 0pt; margin-bottom: 0pt;" role=3D"presentation"><span st= +yle=3D"font-size: 11pt; background-color: transparent; font-variant-numeric= +: normal; font-variant-east-asian: normal; font-variant-alternates: normal;= + font-variant-position: normal; vertical-align: baseline; text-wrap: wrap;"= +>Usage: DNR can be applied to ensure that automated recurring payments are = +processed without the risk of being replaced, thus simplifying financial pl= +anning and contract enforcement. + +</span></p></li></ul></li></ul><span dir=3D"ltr" style=3D"line-height: 1.38= +; margin-top: 16pt; margin-bottom: 4pt;"><span style=3D"font-size: 14pt; fo= +nt-family: Arial, sans-serif; color: rgb(67, 67, 67); background-color: tra= +nsparent; font-weight: 700; font-variant-numeric: normal; font-variant-east= +-asian: normal; font-variant-alternates: normal; font-variant-position: nor= +mal; vertical-align: baseline; white-space-collapse: preserve;">Replace-by-= +Fee (RBF) Use Cases</span></span><p dir=3D"ltr" style=3D"line-height: 1.38;= + margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"font-size: 11pt; font= +-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transpar= +ent; font-variant-numeric: normal; font-variant-east-asian: normal; font-va= +riant-alternates: normal; font-variant-position: normal; vertical-align: ba= +seline; white-space-collapse: preserve;">RBF is essential for transactions = +where timing and confirmation speed are more critical than the immediacy of= + finality. Here are applicable scenarios:</span></p><ul style=3D"margin-top= +: 0px; margin-bottom: 0px; padding-inline-start: 48px;"><li dir=3D"ltr" sty= +le=3D"list-style-type: disc; font-size: 11pt; font-family: Arial, sans-seri= +f; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric= +: normal; font-variant-east-asian: normal; font-variant-alternates: normal;= + font-variant-position: normal; vertical-align: baseline; white-space: pre;= +"><p dir=3D"ltr" style=3D"line-height: 1.38; margin-top: 0pt; margin-bottom= +: 0pt;" role=3D"presentation"><span style=3D"font-size: 11pt; background-co= +lor: transparent; font-variant-numeric: normal; font-variant-east-asian: no= +rmal; font-variant-alternates: normal; font-variant-position: normal; verti= +cal-align: baseline; text-wrap: wrap;">High-Frequency Trading:</span></p><u= +l style=3D"margin-top: 0px; margin-bottom: 0px; padding-inline-start: 48px;= +"><li dir=3D"ltr" style=3D"list-style-type: disc; font-size: 11pt; font-fam= +ily: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent;= + font-variant-numeric: normal; font-variant-east-asian: normal; font-varian= +t-alternates: normal; font-variant-position: normal; vertical-align: baseli= +ne; white-space: pre;"><p dir=3D"ltr" style=3D"line-height: 1.38; margin-to= +p: 0pt; margin-bottom: 0pt;" role=3D"presentation"><span style=3D"font-size= +: 11pt; background-color: transparent; font-variant-numeric: normal; font-v= +ariant-east-asian: normal; font-variant-alternates: normal; font-variant-po= +sition: normal; vertical-align: baseline; text-wrap: wrap;">Example: Trader= +s on cryptocurrency exchanges who need to rapidly adjust their positions ba= +sed on market conditions.</span></p></li><li dir=3D"ltr" style=3D"list-styl= +e-type: disc; font-size: 11pt; font-family: Arial, sans-serif; color: rgb(0= +, 0, 0); background-color: transparent; font-variant-numeric: normal; font-= +variant-east-asian: normal; font-variant-alternates: normal; font-variant-p= +osition: normal; vertical-align: baseline; white-space: pre;"><p dir=3D"ltr= +" style=3D"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;" role=3D= +"presentation"><span style=3D"font-size: 11pt; background-color: transparen= +t; font-variant-numeric: normal; font-variant-east-asian: normal; font-vari= +ant-alternates: normal; font-variant-position: normal; vertical-align: base= +line; text-wrap: wrap;">Usage: RBF allows traders to increase the fee on a = +transaction if it's not getting confirmed quickly enough, enabling them to = +ensure timely executions in response to market movements.</span></p></li></= +ul></li><li dir=3D"ltr" style=3D"list-style-type: disc; font-size: 11pt; fo= +nt-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transp= +arent; font-variant-numeric: normal; font-variant-east-asian: normal; font-= +variant-alternates: normal; font-variant-position: normal; vertical-align: = +baseline; white-space: pre;"><p dir=3D"ltr" style=3D"line-height: 1.38; mar= +gin-top: 0pt; margin-bottom: 0pt;" role=3D"presentation"><span style=3D"fon= +t-size: 11pt; background-color: transparent; font-variant-numeric: normal; = +font-variant-east-asian: normal; font-variant-alternates: normal; font-vari= +ant-position: normal; vertical-align: baseline; text-wrap: wrap;">Emergency= + Service Payments:</span></p><ul style=3D"margin-top: 0px; margin-bottom: 0= +px; padding-inline-start: 48px;"><li dir=3D"ltr" style=3D"list-style-type: = +disc; font-size: 11pt; font-family: Arial, sans-serif; color: rgb(0, 0, 0);= + background-color: transparent; font-variant-numeric: normal; font-variant-= +east-asian: normal; font-variant-alternates: normal; font-variant-position:= + normal; vertical-align: baseline; white-space: pre;"><p dir=3D"ltr" style= +=3D"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;" role=3D"presen= +tation"><span style=3D"font-size: 11pt; background-color: transparent; font= +-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alt= +ernates: normal; font-variant-position: normal; vertical-align: baseline; t= +ext-wrap: wrap;">Example: Payments for time-sensitive services, such as pre= +mium fast delivery or emergency technical services.</span></p></li><li dir= +=3D"ltr" style=3D"list-style-type: disc; font-size: 11pt; font-family: Aria= +l, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-var= +iant-numeric: normal; font-variant-east-asian: normal; font-variant-alterna= +tes: normal; font-variant-position: normal; vertical-align: baseline; white= +-space: pre;"><p dir=3D"ltr" style=3D"line-height: 1.38; margin-top: 0pt; m= +argin-bottom: 0pt;" role=3D"presentation"><span style=3D"font-size: 11pt; b= +ackground-color: transparent; font-variant-numeric: normal; font-variant-ea= +st-asian: normal; font-variant-alternates: normal; font-variant-position: n= +ormal; vertical-align: baseline; text-wrap: wrap;">Usage: When quick servic= +e delivery is critical, RBF enables the sender to increase the transaction = +fee to speed up the confirmation process, ensuring that the transaction is = +prioritized by miners.</span></p></li></ul></li><li dir=3D"ltr" style=3D"li= +st-style-type: disc; font-size: 11pt; font-family: Arial, sans-serif; color= +: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal= +; font-variant-east-asian: normal; font-variant-alternates: normal; font-va= +riant-position: normal; vertical-align: baseline; white-space: pre;"><p dir= +=3D"ltr" style=3D"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;" = +role=3D"presentation"><span style=3D"font-size: 11pt; background-color: tra= +nsparent; font-variant-numeric: normal; font-variant-east-asian: normal; fo= +nt-variant-alternates: normal; font-variant-position: normal; vertical-alig= +n: baseline; text-wrap: wrap;">Bidding in Auctions:</span></p><ul style=3D"= +margin-top: 0px; margin-bottom: 0px; padding-inline-start: 48px;"><li dir= +=3D"ltr" style=3D"list-style-type: disc; font-size: 11pt; font-family: Aria= +l, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-var= +iant-numeric: normal; font-variant-east-asian: normal; font-variant-alterna= +tes: normal; font-variant-position: normal; vertical-align: baseline; white= +-space: pre;"><p dir=3D"ltr" style=3D"line-height: 1.38; margin-top: 0pt; m= +argin-bottom: 0pt;" role=3D"presentation"><span style=3D"font-size: 11pt; b= +ackground-color: transparent; font-variant-numeric: normal; font-variant-ea= +st-asian: normal; font-variant-alternates: normal; font-variant-position: n= +ormal; vertical-align: baseline; text-wrap: wrap;">Example: Participants in= + online auctions who need to ensure their payments go through before the au= +ction closes.</span></p></li><li dir=3D"ltr" style=3D"list-style-type: disc= +; font-size: 11pt; font-family: Arial, sans-serif; color: rgb(0, 0, 0); bac= +kground-color: transparent; font-variant-numeric: normal; font-variant-east= +-asian: normal; font-variant-alternates: normal; font-variant-position: nor= +mal; vertical-align: baseline; white-space: pre;"><p dir=3D"ltr" style=3D"l= +ine-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;" role=3D"presentatio= +n"><span style=3D"font-size: 11pt; background-color: transparent; font-vari= +ant-numeric: normal; font-variant-east-asian: normal; font-variant-alternat= +es: normal; font-variant-position: normal; vertical-align: baseline; text-w= +rap: wrap;">Usage: Auction participants can use RBF to adjust their transac= +tion fees to outpace other transactions in times of network congestion, sec= +uring their winning bids.</span></p></li></ul></li><li dir=3D"ltr" style=3D= +"list-style-type: disc; font-size: 11pt; font-family: Arial, sans-serif; co= +lor: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: nor= +mal; font-variant-east-asian: normal; font-variant-alternates: normal; font= +-variant-position: normal; vertical-align: baseline; white-space: pre;"><p = +dir=3D"ltr" style=3D"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt= +;" role=3D"presentation"><span style=3D"font-size: 11pt; background-color: = +transparent; font-variant-numeric: normal; font-variant-east-asian: normal;= + font-variant-alternates: normal; font-variant-position: normal; vertical-a= +lign: baseline; text-wrap: wrap;">Dynamic Fee Management for Wallets:</span= +></p><ul style=3D"margin-top: 0px; margin-bottom: 0px; padding-inline-start= +: 48px;"><li dir=3D"ltr" style=3D"list-style-type: disc; font-size: 11pt; f= +ont-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: trans= +parent; font-variant-numeric: normal; font-variant-east-asian: normal; font= +-variant-alternates: normal; font-variant-position: normal; vertical-align:= + baseline; white-space: pre;"><p dir=3D"ltr" style=3D"line-height: 1.38; ma= +rgin-top: 0pt; margin-bottom: 0pt;" role=3D"presentation"><span style=3D"fo= +nt-size: 11pt; background-color: transparent; font-variant-numeric: normal;= + font-variant-east-asian: normal; font-variant-alternates: normal; font-var= +iant-position: normal; vertical-align: baseline; text-wrap: wrap;">Example:= + Users sending non-urgent transactions who want to minimize fees but are wi= +lling to increase them if network conditions change.</span></p></li><li dir= +=3D"ltr" style=3D"list-style-type: disc; font-size: 11pt; font-family: Aria= +l, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-var= +iant-numeric: normal; font-variant-east-asian: normal; font-variant-alterna= +tes: normal; font-variant-position: normal; vertical-align: baseline; white= +-space: pre;"><p dir=3D"ltr" style=3D"line-height: 1.38; margin-top: 0pt; m= +argin-bottom: 0pt;" role=3D"presentation"><span style=3D"font-size: 11pt; b= +ackground-color: transparent; font-variant-numeric: normal; font-variant-ea= +st-asian: normal; font-variant-alternates: normal; font-variant-position: n= +ormal; vertical-align: baseline; text-wrap: wrap;">Usage: RBF provides flex= +ibility, allowing users to start with a lower fee and only increase it if t= +he transaction confirmation is delayed, optimizing their transaction fee ex= +penditures. + +</span></p></li></ul></li></ul><span dir=3D"ltr" style=3D"line-height: 1.38= +; margin-top: 16pt; margin-bottom: 4pt;"><span style=3D"font-size: 14pt; fo= +nt-family: Arial, sans-serif; color: rgb(67, 67, 67); background-color: tra= +nsparent; font-variant-numeric: normal; font-variant-east-asian: normal; fo= +nt-variant-alternates: normal; font-variant-position: normal; vertical-alig= +n: baseline; white-space-collapse: preserve;">Adoption and Transition Strat= +egy & Requirements</span></span><p dir=3D"ltr" style=3D"line-height: 1.= +38; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"font-size: 11pt; f= +ont-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: trans= +parent; font-variant-numeric: normal; font-variant-east-asian: normal; font= +-variant-alternates: normal; font-variant-position: normal; text-decoration= +-line: underline; text-decoration-skip-ink: none; vertical-align: baseline;= + white-space-collapse: preserve;">It is implicit, until now, that within th= +is strategy is a requirement for Core and other implementations to abandon = +strategies within Option 2, by specifically removing and rejecting policy t= +ools like </span><span style=3D"font-size: 11pt; font-family: Arial, sans-s= +erif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 700;= + font-variant-numeric: normal; font-variant-east-asian: normal; font-varian= +t-alternates: normal; font-variant-position: normal; text-decoration-line: = +underline; text-decoration-skip-ink: none; vertical-align: baseline; white-= +space-collapse: preserve;">mempoolfullrbf</span><span style=3D"font-size: 1= +1pt; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color:= + transparent; font-variant-numeric: normal; font-variant-east-asian: normal= +; font-variant-alternates: normal; font-variant-position: normal; text-deco= +ration-line: underline; text-decoration-skip-ink: none; vertical-align: bas= +eline; white-space-collapse: preserve;">, or other attempts to overrule, fi= +lter, or otherwise filter and hamper the propagation of valid, non-destruct= +ive transactions.</span></p><br /><p dir=3D"ltr" style=3D"line-height: 1.38= +; margin-top: 0pt; margin-bottom: 0pt;"><span style=3D"font-size: 11pt; fon= +t-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transpa= +rent; font-variant-numeric: normal; font-variant-east-asian: normal; font-v= +ariant-alternates: normal; font-variant-position: normal; vertical-align: b= +aseline; white-space-collapse: preserve;">This proposal is presented to the= + community for feedback, focusing on gathering input from wallet developers= +, miners, and node operators to ensure broad support and understanding of t= +he benefits and implications of these new transaction signals.</span></p><b= +r /></div> + +<p></p> + +-- <br /> +You received this message because you are subscribed to the Google Groups &= +quot;Bitcoin Development Mailing List" group.<br /> +To unsubscribe from this group and stop receiving emails from it, send an e= +mail to <a href=3D"mailto:bitcoindev+unsubscribe@googlegroups.com">bitcoind= +ev+unsubscribe@googlegroups.com</a>.<br /> +To view this discussion on the web visit <a href=3D"https://groups.google.c= +om/d/msgid/bitcoindev/cc812488-9da0-4595-be3b-bcfd7ab41106n%40googlegroups.= +com?utm_medium=3Demail&utm_source=3Dfooter">https://groups.google.com/d/msg= +id/bitcoindev/cc812488-9da0-4595-be3b-bcfd7ab41106n%40googlegroups.com</a>.= +<br /> + +------=_Part_427351_428296076.1713107391072-- + +------=_Part_427350_1896543598.1713107391072-- + |