What Is A Bitcoin Transaction Accelerator?

BTC transaction accelerator

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Using a decentralised and open network like Bitcoin to transfer value is a pretty alien concept to most of us. We’re all used to transferring funds physically through cash or via a series of counterparties who will accept money from us and settle up with our bank while we are none the wiser on when that money clears or how that money clears. 

When it comes to Bitcoin, you’re exposed to the entire transaction confirmation process, and some people don’t fully understand how Bitcoin transactions work. When using Bitcoin on-chain, you are subject to the limitations of block space and the current network congestion. 

If everything is running smoothly, you can have confirmation in 10 minutes and have ultimate security with six confirmations in an hour. This is the benchmark for the network, but not a given; if there are too many people bidding for transaction space, it can lead to longer waiting times and unnecessary panic when a transaction takes longer than expected.

Timing on the timechain 

When a Bitcoin transaction is unconfirmed, it is not yet considered final; if it’s currently sitting in the mempool, it will only clear once miners feel it is worth adding to a block. Miners tend to prioritise transactions based on the fees they can earn; if you’re paying the minimum fee, you’re likely to be ignored until other bids are cleared. 

Transaction times shouldn’t be a pain for those who are simply moving funds into cold storage, but for those who are aiming to transact, trade or open and close Lightning channels, transaction times are more important. 

What to do if my transaction gets ignored?

If you’ve got a transaction that is stuck in a bloated mempool, but your transaction is time sensitive in a manner that the cost to get it pushed through would not bother you, you have two speed-improving options available that work within the consensus of the protocol, namely:

  • RBF – Replace by fee
  • CPFP – Child pays for parent 

Before you decide on the method you are going to use, you first need to check up on the cost of a transaction confirmation so you know what you need to do to outbid everyone else and get a miner’s attention. 

After you’ve got the sat/vbyte value that puts you at the front of the queue, it’s time to broadcast a replacement transaction. 

If you’re not keen on bidding on the open fee market to get your transaction confirmed, there are other third-party markets available where you can pay for a transaction using an out-of-band payment.

What is a Bitcoin Transaction Accelerator?

A Bitcoin Transaction Accelerator is a service set up by miners to allow users to contact pools directly with a request to confirm a transaction. Bitcoin Transaction Accelerators can help you speed up the confirmation of your Bitcoin transactions. This can be useful if you need to send payment quickly or if you are concerned that your transaction may not be confirmed in time.

Transaction accelerators work by requesting miners to seek out your transaction already in the mempool and add it to their next block when compiling their block rewards transactions. This means that your transaction is seen by more miners, which increases the chances of it being included in the next block.

Many Bitcoin Transaction Accelerators accept payment in on-chain Bitcoin, but others also accept layer two payments like the Liquid network or Lightning Network or even broker direct fiat deals. 

When using a Bitcoin Transaction Accelerator, you are dealing with a custodian and brokering a deal through trust since you’re not using the consensus fee market, and this can be risky. You could be suckered into a scam where users claim they are miners and can offer this service, and they can run off with your money, leaving you and your transaction stranded. 

Why would you use a Bitcoin Transaction Accelerator?

You might want to use a Bitcoin Transaction Accelerator for a few reasons.

  • You need to send payment quickly. If you need to send a payment quickly, a Bitcoin Transaction Accelerator can help to ensure that your transaction is confirmed in a timely manner.
  • You are concerned that your transaction may not be confirmed. If you are concerned that your transaction may not be confirmed, a Bitcoin Transaction Accelerator can help to increase the chances of it being included in the next block.
  • You are willing to pay a fee. Most Bitcoin Transaction Accelerators charge a fee for their services. The fee is typically based on the size of your transaction.
  • You’re trying to push through a transaction miners don’t like. Let’s say you’ve broadcast a transaction that OFAC-compliant miners will not touch; you could reach out to a set of miners who don’t see this as an issue.
  • You’re trying to avoid MEV costs. If you’re one of those Bitcoin users who subscribe to Oridinal theory or STAMPs, then you’re moving assets on a secondary market, where users could front-run you in a buy or sell; using a BTA can reduce the cost of MEV losses.

Why are miners offering this as a service?

Miners offer Bitcoin Transaction Accelerator services as a way to make additional money or to access the capital they need for operating without the need to sell their Bitcoin. If you’re getting paid for out-of-band transactions, especially in fiat, you can use those funds to pay for expenses, and it allows you to hold on to the Bitcoin you earned in fees or from the block subsidy. 

Out-of-band transactions also help miners profit from times of speculation in the market where many users are looking to confirm transactions, and they can make a market for their block space outside what is being stated by the protocol. 

Where can I find Bitcoin Transaction Accelerators?

Note: If you intend to use a Transaction accelerator, please do your research and ensure that they still have a reliable track record before committing to any transactions.

Bit Accelerate https://bitaccelerate.com/
Via BTChttps://www.viabtc.com/tools/txaccelerator
A list of Bitcoin Transaction Accelerators

Speed isn’t always a need.

Bitcoin Transaction Accelerators can be a useful tool for speeding up the confirmation of your Bitcoin transactions. However, it is important to note that they do not guarantee that your transaction will be confirmed. 

If you are concerned about the speed of your transaction, it is best to check the Bitcoin network’s current status before sending your payment and try using other methods like layer two solutions where possible. 

Disclaimer: This article should not be taken as, and is not intended to provide any investment advice. It is for educational and entertainment purposes only. As of the time posting, the writers may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency, as all investments contain risk. All opinions expressed in these articles are my own and are in no way a reflection of the opinions of The Bitcoin Manual

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