Excerpt
I explain how Bitcoin transactions are selected by miners and what role transaction fees play in the process. Watch now to understand the Bitcoin mempool, how the fee market works, and what affects how quickly your transaction gets confirmed.
Transcript
When you use a wallet and you send a transaction, then it basically goes into the Internet and the mining nodes see the transactions and they will take the transactions with the highest fees first and they construct a block and they put it into the block. So the mining nodes select the transactions that are currently being done, put it into their block and then start mining. And the first miner who is the fastest to solve the mining puzzle is allowed to put the whole block onto the blockchain. On the left side, that’s the Mempool. You can then see if it’s long, you know, if there are thousands of transactions waiting, then you will see that the transaction fees are going up. When it’s short, the transaction fees are very low because the more transactions there are, it’s a fee market. You pay more, then you get added to the blockchain sooner because the miners want the profit. They take the highest fee transactions first.
