According to On-chain Statistics, Binance Reportedly Modified the Bitcoin Confirmation Process

Published on:

Last Updated on June 3, 2023 by Bitfinsider

Activity surrounding Binance’s consolidation transactions has been identified in new on-chain data. As can be seen, the most recent batch of these transactions has experienced an RBF shift, going from 13.5 sats/vb to 56.4 sats/vb.

Despite the fact that these transactions did not “signal BIP125 replaceability”, it is possible that Binance, the biggest exchange in the world, is using the Full-RBF Peering Bitcoin core that Peter Todd has long favored.

An unconfirmed transaction’s fee can be increased by the sender thanks to the standard mechanism known as RBF on the Bitcoin network.

Known for his contributions to the transaction replacement policy, specifically “Full RBF,” which permits unconfirmed transactions to be replaced with a new transaction version that pays a higher fee, Peter Todd is a well-known Bitcoin Core developer.

This suggests that Binance may have made a deal with a particular mining pool to implement this move.

AntPool and F2Pool are the mining pools that appear to be mining the transactions; blocks 792,440 and 792,442 are related to the former, and block 792448 to the latter.

The actions of Binance line up with the May 26 launch of Bitcoin Core v25.0.

The updated version adds a ton of brand-new features and bug fixes that should improve user experience.

It’s possible that Binance is making use of this latest version’s improvements, notably in terms of managing transactions, mining pool features, or changes to fee regulations.

Additionally, the RBF regulations are said to have changed in the most recent Bitcoin Core release. This suggests that the current transactions on Binance may be a trial run for the new RBF functionality.

One of the features that could be affected by this upgrade is the Full RBF policy, which was previously mentioned in this context. The community is waiting to see how Bitcoin Core 25.0 will affect the entire Bitcoin network.

Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.