What's with this odd generation? Block reward more than 50 Bitcoins
2010 Feb 10
See all posts
What's with this odd generation? Block reward more than 50 Bitcoins @ Satoshi Nakamoto
- Author
-
Satoshi Nakamoto
- Email
-
satoshinakamotonetwork@proton.me
- Site
-
https://satoshinakamoto.network
theymos
What's with this odd generation?
February 10, 2010, 06:31:40 PM
I thought BitCoin only generated in 50 coin increments, but I got
50.44 here.
SmokeTooMuch
February 10, 2010, 07:06:17 PM
had the same a while ago with 50.26
BitcoinFX
February 11, 2010, 04:57:50 PM
That is odd !?! I've currently only had 50.00 generations
myself. 
Satoshi Nakamoto
February 12, 2010, 03:08:08 AM
There's a small transaction fee for very large transactions. The
node that generates the block that contains the transaction gets the
fee.
If the same money gets sent again, it won't incur the fee again. If
all you have is generated coins in your wallet, if you send them all in
one huge transaction, it has to bundle hundreds of 50 bc coins together.
After that it's just one line to send the combined unit.
theymos
February 12, 2010, 08:31:52 AM
Quote from: satoshi on February 12, 2010, 03:08:08 AM
There's a small transaction fee for very large transactions. (usually
over 10,000 bc) The node that generates the block that contains the
transaction gets the fee.
The fee is based on the KB size of the transaction and intended to
compensate the network for the resources used to process it.
If the same money gets sent again, it won't incur the fee again
because it'll be small. The first time they're bundling hundreds of 50
bc coins together. After that it's just one line to send the combined
unit.
Does the sending client send more BitCoins to account for the fee (so
the recipient gets what he's expecting)? Why couldn't someone just send
1000 small transactions to bypass fees?
SmokeTooMuch
February 12, 2010, 01:11:09 PM
why do we even need fees ? i thougt the no-fees-feature was one of
the advantages of bitcoin ?!
riX
February 12, 2010, 02:31:15 PM
Quote from: theymos on February 12, 2010, 08:31:52 AM
Does the sending client send more BitCoins to account for the fee (so
the recipient gets what he's expecting)? Why couldn't someone just send
1000 small transactions to bypass fees?
You could, but you'd have to wait for one block to be generated
between each one of them.
Satoshi Nakamoto
February 14, 2010, 06:28:03 AM
Quote from: theymos on February 12, 2010, 08:31:52 AM
Does the sending client send more BitCoins to account for the fee (so
the recipient gets what he's expecting)?
Yes.
Quote from: SmokeTooMuch on February 12, 2010, 01:11:09 PM
why do we even need fees ? i thougt the no-fees-feature was one of
the advantages of bitcoin ?!
Almost all transactions are free. A transaction is over the maximum
size limit if it has to add up more than 500 of the largest payments
you've received to make up the amount. A transaction over the size
limit can still be sent if a small fee is added.
The average transaction, and anything up to 500 times bigger than
average, is free.
It's only when you're sending a really huge transaction that the
transaction fee ever comes into play, and even then it only works out to
something like 0.002% of the amount. It's not money sucked out of the
system, it just goes to other nodes. If you're sad about paying the
fee, you could always turn the tables and run a node yourself and maybe
someday rake in a 0.44 fee yourself.
theymos
February 14, 2010, 08:48:57 AM
Is the fee enough to always ensure the profitability of running a
node, even when BitCoin generation stops being profitable?
Satoshi Nakamoto
February 14, 2010, 03:52:23 PM
Right. Otherwise we couldn't have a finite limit of 21 million coins,
because there would always need to be some minimum reward for
generating. In a few decades when the reward gets too small, the
transaction fee will become the main compensation for nodes. I'm sure
that in 20 years there will either be very large transaction volume or
no volume.
What's with this odd generation? Block reward more than 50 Bitcoins
2010 Feb 10 See all postsSatoshi Nakamoto
satoshinakamotonetwork@proton.me
https://satoshinakamoto.network
I thought BitCoin only generated in 50 coin increments, but I got 50.44 here.
had the same a while ago with 50.26
That is odd !?! I've currently only had 50.00 generations myself.
There's a small transaction fee for very large transactions. The node that generates the block that contains the transaction gets the fee.
If the same money gets sent again, it won't incur the fee again. If all you have is generated coins in your wallet, if you send them all in one huge transaction, it has to bundle hundreds of 50 bc coins together. After that it's just one line to send the combined unit.
Does the sending client send more BitCoins to account for the fee (so the recipient gets what he's expecting)? Why couldn't someone just send 1000 small transactions to bypass fees?
why do we even need fees ? i thougt the no-fees-feature was one of the advantages of bitcoin ?!
You could, but you'd have to wait for one block to be generated between each one of them.
Yes.
Almost all transactions are free. A transaction is over the maximum size limit if it has to add up more than 500 of the largest payments you've received to make up the amount. A transaction over the size limit can still be sent if a small fee is added.
The average transaction, and anything up to 500 times bigger than average, is free.
It's only when you're sending a really huge transaction that the transaction fee ever comes into play, and even then it only works out to something like 0.002% of the amount. It's not money sucked out of the system, it just goes to other nodes. If you're sad about paying the fee, you could always turn the tables and run a node yourself and maybe someday rake in a 0.44 fee yourself.
Is the fee enough to always ensure the profitability of running a node, even when BitCoin generation stops being profitable?
Right. Otherwise we couldn't have a finite limit of 21 million coins, because there would always need to be some minimum reward for generating. In a few decades when the reward gets too small, the transaction fee will become the main compensation for nodes. I'm sure that in 20 years there will either be very large transaction volume or no volume.