Although the incentives for faster Bitcoin transactions are clear, and network limitations are widely known, the transaction fee market is rich with opportunities to optimize. Finding the most efficient fee to pay for your transaction depends on several variables, and sometimes your calculation might be off.
That is why Bitcoin transaction acceleration services have popped up to help you find the efficiencies you might not be able to get on your own.
How do Bitcoin Transaction Accelerators Work?
These services work by pumping the fee on your transaction to where the optimum price should be. They can also re-broadcasting your transaction until miners pick it up.
Bitcoin transaction accelerators often take a small fee for helping you find these efficiencies. Some also work on the basis of donations.
Bitcoin Transaction Data
You might be asking yourself why would these services even exist if information about Bitcoin transactions is public? The answer is simple: It takes some analytics to sift through the data and understand where you can optimize. You will not invest time analyzing the data to save a few Satoshis here or there.
Therefore, Bitcoin transaction acceleration services do this for you and for thousands like you. They are able to take advantage of the shifting data in the Bitcoin transaction market. Thes services profit by scaling the utility of their analysis.
The Bitcoin Transaction Market
The fact that a Bitcoin transaction market even exists, might be a surprise to many. This side of BTC transactions is often overshadowed by talk about market price and technology. It can also be overshadowed by the focus on political and social implications of Bitcoin adoption.
For those of you who would like to understand how this Bitcoin transaction market works, here is what you must know:
- All Bitcoin transactions that are broadcasted – by nodes – end up in a place called the mempool
- The mempool – memory pool – is where the miners pick the transactions up from to time-stamp – confirm – them
- Since miners are competing entities, they want to maximize the rewards they get from the blocks they add to the blockchain
- Those blocks have limited space – 1 mb per block. Therefore miners can only confirm a limited amount of transactions and claim the fees attached to them
- In an environment in which the mempool is full of unconfirmed transactions, miners will pick the ones that have the highest fees attached to them
- This scarcity – of blocks and block space – creates a situation for the transacting entity to be strategic
- If there is a low priority transaction, a person can attach a low fee and wait until the mempool empties a bit
Note: Fees can go up after halvings because block subsidy drops. Miners try to make up for some of the lost revenue on fees. This usually happens if Bitcoin price does not increase significantly following the halving.
Bitcoin Transaction Accelerators in Action
But strategizing can be tricky. No one knows for sure when their transaction will be picked up. The volume of unconfirmed transactions in the mempool is constantly changing.
So, what if you were expecting your low priority transaction to be picked up within 5 days and on the fourth day you see it is still in the mempool?
This is where Bitcoin transaction accelerators spring into action. You can go to their website, submit your transaction hash and pay the fee.
The transaction acceleration services will do their best to provide more adequate incentives for the miners to pick your transaction up from the mempool and confirm it.
Bitcoin Transaction Acceleration Services
There are many Bitcoin transaction acceleration services out there. We chose a few that caught our eye. You can try them whenever you need a little nudge to get your transactions through:
- Bitaccelerate.com – a free Bitcoin transaction accelerator that has clear instructions on how to proceed with your request. This service works on the basis of donations, making it different from almost all the other services in this list. It also has a Bitcoin fee calculator and other resources that can help you optimize your transaction fee
- Btcaccelerator.net – another option for you to try. This Bitcoin transaction accelerator requires a payment for its service. It also includes clear instructions on how to use it and what to expect from its services. It also has a refund policy
- ViaBTC accelerator – if miners confirm your transaction, you can cut right to the chase. Use the Bitcoin transaction acceleration service directly from one of the most influential mining pools out there
There are many other Bitcoin transaction accelerators out there. You shouldn’t spend a lot of time picking one because time is of the essence. You want your transaction to get confirmed quickly. Even if the service fails, at most it costs you a few hundred sats.
Can Bitcoin Transaction Accelerators be Scams?
If you are playing with a few sats at a time, even if the risk of getting scammed is high, you shouldn’t be too worried. Bitcoin transaction accelerators cannot steal the funds within the transaction you broadcasted in any case.
If you pay for the service and they managed to scam you, next time you will use a different service. The lesson will cost you a few cents.
Will these Bitcoin Transaction Accelerators be Relevant in the Future?
If you just make a few transactions every month you might be asking yourself how relevant these Bitcoin transaction accelerators really are? Well, the answer to that question has a substantial subjective component.
If you are stacking sats, saving on transactions is just another way you can stack. Therefore, you might want to use Bitcoin transaction acceleration services, even if they come at a cost.
Nevertheless, it is clear that Bitcoin transaction accelerators are more relevant to those that must transact multiple times each month. Saving on tens, hundreds or even thousands of transactions can be significant. If you are making a one time purchase or transacting to re-organize your coins in your wallet, accelerators are less relevant.
Lightning Network and Bitcoin Transaction Accelerators
Those who have high volumes of transactions to make on a daily, weekly or monthly basis might also prefer to use the Lightning Network – LN – and save money that way.
Therefore, the innovation that could potentially save you money in the future and compete with Bitcoin transaction accelerators is the largely fee-less, instantaneous transaction on the Lightning Network.
This doesn’t mean that Bitcoin transaction accelerator will become completely obsolete. The underlying infrastructure below the Lightning Network will continue to operate with the same tools that it did before LN was launched.
Transaction volumes in the mempool can spike due to a variety of factors. Accelerators will be there to help you get your transaction through when demand is high, and you decide to settle your Lightning Network transactions.
Alternatives to Bitcoin Transaction Accelerators
If for any reason LN and Bitcoin transaction accelerators are not your cup of tea, you can always use other free services to optimize your transaction fees.
There are various Bitcoin transaction calculators that have already refined the data for you. They can give you an indication on what the most efficient fee rate will be.
Just remember, how much you pay for your transactions to go through depends on a proper assessment of your needs. So, take a couple of minutes to think and pick your preferred route to push those funds through the network!