What Is the Replace-by-Fee (RBF) Protocol and How Is It Activated?
Replace-by-Fee (RBF) is a protocol feature that allows an unconfirmed transaction to be replaced by a new, conflicting transaction that pays a higher fee. It is activated by the sender setting a specific flag (an RBF signal) in the original transaction before broadcasting it.
This signal indicates to the network that the sender reserves the right to replace the transaction later. Without this explicit opt-in, nodes may adhere to a "first-seen" policy, which rejects the replacement transaction.
Glossar
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.
Conflicting Transaction
Transaction ⎊ The occurrence of a conflicting transaction, within cryptocurrency, options, or derivatives markets, signifies a simultaneous attempt to execute two or more orders that inherently contradict each other, potentially leading to system errors, order rejections, or market instability.