Coinbase Developer: We Could Speed ​​Up Transaction Processing

The other day, the main developer of the Coinbase Exchange, Brock Miller, said that the platform introduced a new method to speed up the processing of Bitcoin transactions, in particular, it concerns operations with low commissions. As written in the company's blog on Medium, the mechanism is called “Child Pays for the Parent” (CPFP).

The essence of the new method is that a subsidiary transaction with a higher commission is “tied” to a transaction with a low fee, and, as a result, with a longer processing time. As a result, the cumulative collection of both operations increases and increases the rate of their entry into the unit.

Miller explained that the problem of speeding up transaction processing is very relevant, and often arises because of the commission setting algorithm. For example, if in bank account transactions the charge represents a certain percentage of the amount, then in cryptocurrency transactions it is somewhat more complicated.

There, all transactions are classified according to the principle of the highest rate: the higher the commission, the faster the transaction will be completed. Operations with low fees are often delayed, and if the rate of the cryptocurrency in which the transaction is carried out begins to fall at this time, the delay will increase, and for an indefinite period.

The situation should be corrected by the “Child Pays for the Parent” mechanism, which is activated while the transaction is waiting. At the moment, it has already been successfully tested by the Coinbase Exchange. As a result of his work, he managed to speed up "thousands of transactions in one day."