Key Points
- Bitcoin Core developers have adopted full replace-by-fee (full-RBF) as default for v28.0.
- Full-RBF policy allows users to replace pending unconfirmed transactions with new ones, typically with higher transaction fees.
Bitcoin Core has implemented a full replace-by-fee (full-RBF) policy as its default for v28.0.
The announcement was made by Peter Todd, a renowned Bitcoin developer, who stated that this achievement took 11 years to accomplish.
The RBF policy provides users the ability to replace unconfirmed transactions with new ones. Importantly, the replacement transaction always incurs a higher fee.
Origins and Purpose of the Bitcoin RBF Policy
The RBF policy, which originated from BIP 125, was introduced in the Bitcoin protocol with the release of Bitcoin Core version 0.12.0 in February 2016.
This feature grants users the ability to accelerate their transactions or adjust the fee in response to network conditions.
An example of its use occurred last November when a Bitcoin user paid a whopping $3.1 million to transfer 139.42 Bitcoin, marking the eighth-highest fee in Bitcoin’s history.
The RBF policy is typically used for fee bumping, cancellation, or updating transactions.
The shift to full-RBF is significant as it allows users to consistently replace transactions, something that was not always possible with BIP 125.
For over a decade, discussions and debates about full-RBF have been a prominent feature of the Bitcoin landscape, primarily due to Bitcoin’s conservative approach towards major changes.
Todd believes that miners will greatly benefit from this change, particularly in terms of profit maximization.
Additional Benefits of Full-RBF Policy
Another advantage of the full-RBF policy is its potential to reduce legal risks associated with unconfirmed double-spends.
In order to maintain system security, full-RBF slows propagation to help prevent the risk of an attacker successfully executing a double-spend.
The policy also enhances privacy by making it harder for blockchain analysis firms to deanonymize transactions.
Todd explained that the implementation of full-RBF took a lot of work, including forking Bitcoin Core for years with full-RBF peering code.
In related news, Bitcoin has seen a slight price recovery following a recent crypto market crash.
On Monday, the virtual asset market in Korea experienced a sudden downturn, which along with other factors, triggered a dip in Bitcoin’s price.
The rising unemployment rate in the United States, reaching its highest level in nearly three years, added to the concerns.
This situation sparked fears of a potential economic downturn, leading investors to sell off risky assets like Bitcoin and altcoins.
At the time of writing, Bitcoin was trading at $55,008.41, an increase of 7.09%.
