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This means there are no charge-backs for merchants when taking payment via bitcoin.
A charge-back is the Blockchain fees Blockcjain a credit-card provider for a retailer to cover the loss on a fraudulent or disputed transaction. Bitcoin payments can be sent and received at a very low cost or none at all, as bitcoin fees are based on the amount of data sent. For merchants, the advantages of receiving bitcoin are obvious. Payments made using the virtual currency save substantially on processing fees and eliminate the risk of charge-backs.
If there are more transactions than will fit fses one block, miners can Blokchain expected Bloockchain choose the transactions with Blockchain fees highest fees first. So the higher the Blockcgain you attach to a transaction, the fess likely it is to make it into the next Bkockchain. Of course, demand fluctuates over the course of the day. So if you have a non-urgent transaction, you're welcome to submit it with a below-average fee and let it sit around unconfirmed Blockdhain a few hours. At some point, demand might slacken and you might get your transaction at a bargain price.
Some paid significantly more than that, while others got away with paying less. The current reward per block is Thus it makes sense to include a fees to incentivize the miner to add the transaction Blockchaij the block. Miners prioritize transactions with the highest fee per byte, which is why senders who are in a hurry will pay a surcharge to push their transaction to the front of the queue. Pay the highest possible fee and your transaction should be confirmed within the next block, which will take an average of between 5 and 15 minutes. Pay lower fees and your transaction should be confirmed within the next three blocks, which will generally take between 10 and 30 minutes.
To assure the desired bound on the Byzantine nodes holds, we can include stake, slashing conditions and other incentivization techniques so that attacks feel as ridiculous and uneconomical as in PoW circumstances. To conclude, in the current state of Bitcoin, Ethereum and other PoW-based blockchains, fees are not paid to secure the network, inflation tax does that. Fees are paid in order to incentivize miners to include transactions in blocks. The question of a feasible fee-free blockchain boils down to the possibility of a blockchain that is governed by a non-resource-wasteful consensus protocol such as PBFT. Some people claim such solutions are already possible e. It remains an open question and up for the general public to decide as these solutions come to maturity.
We are not sure about PoS though. PoS-based chains give the political power of the system to the major currency holders early investors, etc. They will drive the system according to their interests, which are probably to increase the value of their tokens. PoW-based chains, on the other hand, give much of the power to the miners — this was seen in SegWit, where Bitmain opposed the soft fork because of internal financial interests as was claimed by Greg Maxwell and others, check out this blog post and were able to delay the proposal significantly.