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traceddd | 4 years ago

Fees are based on resource usage. In Bitcoin this is usually the total data size of inputs and outputs that are used to make the sum. This is where the issue of dust arises, when an address holds a mass quantity of low value inputs, but combing them yields a very large and therefore costly transaction.

In some other chains, like Ethereum, the accounting is ledger based. With these systems theres is no variety in input count, but it similarly scales by transaction computation so more complex contracts are more expensive.

Both networks have a fluctuating transaction cost due to congestion competition, but the “base cost” in either is totally unaffected by the value/total amount of currency.

discuss

order

faeyanpiraat|4 years ago

You mean that I can have 1btc in 1 piece, or have basically 0 usable btc if I have 1btc gained in like a 1000 small transactions over time?

So when I “spend” that fragmented 1 btc, it all gets eaten up by fees?

Hjfrf|4 years ago

There was a update on bitcoin last year ("taproot") to improve that issue.

Prior to that it was absolutely the case that multiple sender addresses caused multiple fees.

Not sure about other cryptocurrency.