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Stallion 2y ago

Some thoughts on mempool.space back channel fees.

1) it will cripple mempool based fee estimation

2) hard to know what fee to pay because these "back payments"won't be included in the block fees. Even though scanning last block fees it won’t be visible.

3) only mempool.space thing. No open protocol.

4) mempool space might become central part of the whole network if this will be used heavily. Not good.

5) No idea why this service when you already can use RBF or CPFP. Probably these RBF and CPFP solutions will also be cheaper as I believe mempool will take some extra cut for this service

6) business that is doing mempool - fee estimation - is now trying to offer the service that will effect transparency in fee estimations for transaction.

7) this back channel bump fee also requires trust that third party will bump the fee. In case of RBF no trust is needed.

Anyway it might cause issues only if used heavily by many people.

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Discussion

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Hynek 2y ago

Right,

However, there are advantages too

- You can decrease the fee (not only increasing).

- You don't take up extra space in blockchains like with CPFP

- You don't have to change the original transaction - for example if you don’t use change address

- You can pass on the payment of fees to the recipient

And btw it is kind on inevitable like full RBF…

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Stallion 2y ago

Right, good point. If it won’t be used heavily then it can be beneficial for some use cases and co-exist without those downsides I mentioned previously.

Downsides would take effect when used by majority.

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Django 2y ago

Can you provide me with some more info about this back channel fee stuff?

Have been dealing with other things now, so I'm not in the loop.