How Does a Transaction’s “Replace-by-Fee” (RBF) Feature Attempt to Reduce Latency?
Replace-by-Fee (RBF) allows a user to submit a new version of an unconfirmed transaction with the same nonce but a significantly higher transaction fee. The original, lower-fee transaction is then dropped by nodes, and the new, higher-fee version is prioritized by miners/validators.
This effectively lets the user "bid up" their fee to accelerate inclusion, thereby reducing the latency of the transaction's confirmation.
Glossar
Cryptocurrency Networks
Structure ⎊ Cryptocurrency networks are decentralized, peer-to-peer systems that facilitate the transfer and validation of digital assets without relying on central authorities.
RBF
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.