Cut Down on Your Transaction Fees With Transactionfee.info
It is evident that with the popularity of Bitcoin, its price and usage are witnessing a surge. Consequently, the corresponding fees of bitcoin transactions have risen to somewhat unfavorable levels for the users. At times, the transaction fees end up costing more than the actual item on sale.
I mean who would want to pay for their products with Bitcoin only to end up paying more than for the thing? Thankfully, this is not always the truth as prices are susceptible to changes and keep rising and falling. But keeping tabs on bitcoin fees is a challenge, but there is still a way to achieve a low-cost transaction. Here one platform that could help you save up on while transacting.
Transactionfee.info is a service to assists bitcoin users in calculating the number of fees each transaction charges using the cryptocurrency. With the advanced technologies such as Lightning Network yet to be fully integrated, the deals experience a lot of delays and dramatic increase of the gas fees.
Therefore, this presents a considerable disadvantage especially if the price keeps fluctuating. Transactionfee.info plans to eliminate this challenge by helping users optimize their wallet transaction usage. In returns, users can save on rather exorbitant fees and save up on the overall cost.
How It Works
To use the calculator one has to put in the transaction ID and indicate the type of transaction, whether form an exchange or a wallet service. The system analysis will examine the deal through three main factors. These will include
- SegWit addresses – Segregated Witness is a new advanced technology that acts as an element within the bitcoin network to help improve the transaction rate, hence easing the fees.
- MultiSig Inputs – the system also works to identify the multi signatures of both parties to the transaction.
- Batching – this feature allows crypto users to send digital currency payments under one transaction, thus saving them on payment fees. Most crypto investors tend to ignore or are not aware of the using this practice once in a while to dramatically reduce their bitcoin transaction fees while using services, exchanges or transferring high-volumes.
An excellent way to understand the basics within transactionfee.info would need a quick sample of how the system gets you outcomes and raises your awareness of how much you are losing to transaction fees.
An excellent transaction sample I choose to pick is one that was involving a somewhat famous exchange Binance. Details from transactionfee.info indicate the sender was $27.18 deep in fees. Furthermore, it shows the transaction lacks SegWit inputs which could have saved the sender 12% of the cost.
For the batching the output stands at 66 which is a reasonable rate in regards to one of the productions was a change output. The transaction also shows no support for MultiSig inputs. While it is a unique security feature, it increases the size of the operation and thus the fee.
Regarding optimization of the transaction, transactionfee.info shows 12% as the actual savings. In essence, the sender lost 3 dollars more as transaction fee somewhere during the process. Although negligible, this amount to a significant amount in the long run.
Who Owns TransactionFee.info?
Transactionfee.info is an open source creation by German developer, b10c. His goal is to help reduce transactions cost while increasing their optimization.