Fees

What is mining fee?

In Bitcoin transactions, a mining fee is a small amount of BTC paid to miners to validate and include the transaction in the blockchain. Fees are measured in satoshis per byte (sats/byte) and depend on the transaction size and network congestion. Higher fees result in faster processing, as miners prioritize transactions with greater rewards.

What does the mining fee depend on?

The mining fee in a Bitcoin transaction depends on several factors, including network congestion, transaction size, and the fee priority set by the user. When the network is busy with many pending transactions, fees increase as users compete for limited block space. Larger transactions, measured in bytes, require more computational resources, leading to higher fees. Additionally, users can set higher fees to prioritize their transaction for faster confirmation. These dynamics, combined with overall blockchain activity and miner incentives, determine the mining fee at any given time.

What is coordinator fee?

A coordinator fee is a charge applied in certain privacy-focused cryptocurrency transactions, such as those conducted through CoinJoin protocols. The coordinator is the entity or service that facilitates and organizes the CoinJoin transaction, ensuring that multiple participants' inputs and outputs are combined to enhance anonymity.