How Does “Replace-by-Fee” (RBF) Impact a Miner’s Transaction Selection Process?
Replace-by-Fee (RBF) is a feature that allows a user to replace an unconfirmed transaction in the mempool with a new transaction that pays a higher fee. RBF impacts a miner's selection process by allowing them to prioritize the higher-fee replacement transaction over the original one.
This mechanism increases fee revenue for miners and provides users with a way to speed up a stuck transaction by increasing the fee, especially during periods of high congestion.
Glossar
Full Rbf
Derivation ⎊ Full Rbf, within cryptocurrency options and financial derivatives, signifies a complete representation of the risk-neutral density function, crucial for pricing and hedging exotic options.
Transaction Selection
Criterion ⎊ Transaction selection is the critical process where a block producer, such as a miner or validator, chooses a subset of pending transactions from the mempool to include in the next canonical block.
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.