# How Does a 'Replace-by-Fee' (RBF) Transaction Work? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

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## How Does a ‘Replace-by-Fee’ (RBF) Transaction Work?

RBF allows a user to replace an unconfirmed transaction in the mempool with a new transaction that has the same nonce but offers a higher gas fee. This is used to speed up a stuck transaction or to cancel a pending one by replacing it with a zero-value transaction to the sender's own address.

- [What Is a ‘Stuck Transaction’ and How Is It Resolved?](https://learn.greeks.live/path/what-is-a-stuck-transaction-and-how-is-it-resolved/)

- [What Are the Risks of Using RBF for a Sender or Receiver?](https://learn.greeks.live/path/what-are-the-risks-of-using-rbf-for-a-sender-or-receiver/)

- [What Is “Replace-by-Fee” (RBF) and How Does It Affect Miners?](https://learn.greeks.live/path/what-is-replace-by-fee-rbf-and-how-does-it-affect-miners/)

- [What Is the Practical Difference between “Opt-in RBF” and “Full RBF”?](https://learn.greeks.live/path/what-is-the-practical-difference-between-opt-in-rbf-and-full-rbf/)

- [What Is a “Transaction Nonce” and How Does It Differ from a Mining Nonce?](https://learn.greeks.live/path/what-is-a-transaction-nonce-and-how-does-it-differ-from-a-mining-nonce/)

- [Relate the Concept of ‘Nonce’ in Mining to the ‘Nonce’ in ECDSA Signing](https://learn.greeks.live/path/relate-the-concept-of-nonce-in-mining-to-the-nonce-in-ecdsa-signing/)

- [What Is ‘Replace-by-Fee’ (RBF)?](https://learn.greeks.live/path/what-is-replace-by-fee-rbf/)

- [Why Do Market Makers Often Cancel and Replace Their Orders in a Dynamic Order Book?](https://learn.greeks.live/path/why-do-market-makers-often-cancel-and-replace-their-orders-in-a-dynamic-order-book/)

## Glossar

### [RBF](https://learn.greeks.live/area/rbf/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Policy ⎊ RBF (Replace-by-Fee) is a protocol feature that allows a user to replace an unconfirmed transaction in the mempool with a new transaction that includes a higher transaction fee.

## Discover More

### [Can Smart Contracts Fully Replace Legal Contracts for Derivatives Agreements?](https://learn.greeks.live/path/can-smart-contracts-fully-replace-legal-contracts-for-derivatives-agreements/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can Smart Contracts Fully Replace Legal Contracts for Derivatives Agreements?](https://learn.greeks.live/wp-content/uploads/2025/10/Ergonomic-Cryptocurrency-Wallet-Interface-and-On-Chain-Derivative-Execution-Stylus-Mechanism.webp)

Smart contracts automate execution but lack the legal enforceability for off-chain disputes and compliance.

### [What Is the Concept of "Minimum Transaction Fee" in Some Cryptocurrencies?](https://learn.greeks.live/path/what-is-the-concept-of-minimum-transaction-fee-in-some-cryptocurrencies/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Concept of "Minimum Transaction Fee" in Some Cryptocurrencies?](https://learn.greeks.live/wp-content/uploads/2025/10/Advanced-Quantum-Entanglement-Protocol-Layer-Two-Scaling-Mechanism-in-Decentralized-Finance.webp)

It is a protocol or node-policy-enforced lower limit on the fee rate, designed to prevent network spam and ensure minimal miner compensation.

### [How Does the Transaction Fee Mechanism Affect Settlement Priority?](https://learn.greeks.live/path/how-does-the-transaction-fee-mechanism-affect-settlement-priority/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Transaction Fee Mechanism Affect Settlement Priority?](https://learn.greeks.live/wp-content/uploads/2025/10/Microscopic-View-of-Digital-Asset-Liquidity-Provision-Mechanism-Interface-for-Decentralized-Exchange-Order-Flow.webp)

A higher fee incentivizes miners to prioritize the delivery transaction, ensuring it is executed promptly within the settlement window.

### [What Is the Role of "Network Latency" in a Successful RBF Double-Spend Attack?](https://learn.greeks.live/path/what-is-the-role-of-network-latency-in-a-successful-rbf-double-spend-attack/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Role of "Network Latency" in a Successful RBF Double-Spend Attack?](https://learn.greeks.live/wp-content/uploads/2025/10/Crystalline-Bifurcation-Modeling-Volatility-Surface-Geometry-in-Decentralized-Finance-Structures.webp)

Low network latency is crucial for an RBF attacker to ensure the higher-fee replacement reaches miners before the original transaction is confirmed.

### [How Do Transaction Size and Fee Relate to the 'Fee Rate'?](https://learn.greeks.live/path/how-do-transaction-size-and-fee-relate-to-the-fee-rate/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do Transaction Size and Fee Relate to the 'Fee Rate'?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Autonomous-Organization-Governance-Token-Volatility-Surface-Visualized-Through-Analog-Compass-Metaphor.webp)

Fee rate (sat/vB) is calculated as Total Fee divided by Transaction Size, which is the metric miners use for prioritization.

### [What Is the Difference between Impermanent Loss and Transaction Fee Income for a Liquidity Provider?](https://learn.greeks.live/path/what-is-the-difference-between-impermanent-loss-and-transaction-fee-income-for-a-liquidity-provider/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between Impermanent Loss and Transaction Fee Income for a Liquidity Provider?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Visualization-of-Decentralized-Finance-Volatility-and-Derivative-Hedging-Mechanics.webp)

Impermanent loss is a capital divergence loss, while transaction fee income is the positive revenue earned for providing liquidity.

### [Does the 'Gas Fee' Paid for a Transaction Count as Consideration?](https://learn.greeks.live/path/does-the-gas-fee-paid-for-a-transaction-count-as-consideration/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Does the 'Gas Fee' Paid for a Transaction Count as Consideration?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Machined-Interface-Component-Geometry-Simulating-Decentralized-Exchange-Liquidity-Provision-Mechanisms.webp)

No, gas fees are a network transaction cost, not a value exchanged between the contracting parties.

### [How Does a Small Block Size Limit Contribute to Fee Market Volatility?](https://learn.greeks.live/path/how-does-a-small-block-size-limit-contribute-to-fee-market-volatility/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Small Block Size Limit Contribute to Fee Market Volatility?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Finance-Volatility-Surface-Topology-Featuring-Atomic-Swap-Derivative-Primitives.webp)

The small, fixed supply of block space forces competitive bidding during high demand, which directly causes extreme volatility in transaction fees.

### [How Can a High Transaction Fee Burn Impact Network Usage?](https://learn.greeks.live/path/how-can-a-high-transaction-fee-burn-impact-network-usage/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Can a High Transaction Fee Burn Impact Network Usage?](https://learn.greeks.live/wp-content/uploads/2025/10/Interlocking-Modular-Subsystems-Visualizing-Decentralized-Exchange-Liquidity-Pool-Infrastructure-Architecture.webp)

It can deter users from making small or frequent transactions, reducing overall network usage and adoption due to high cost.

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**Original URL:** https://learn.greeks.live/learn/how-does-a-replace-by-fee-rbf-transaction-work/
