As you know , bitcoin is usually victim of spam attacks to inflate transaction fees and make mining more rentable . Will that kind of attack be possible with the cardano’s stakeholders ? What is the minimum relay tx fee for ADA? As i could read on roadmap, transactions fees will make that practice no profitable. What is your opinion ?
Caught Bitcoin spam attack on camera.
(Green = input, Red = output, Yellow = input+output, Blue = transaction)
Visualization@dailyblockchain pic.twitter.com/pQNlYTw6eh
— Shayan Eskandari (@sbetamc) December 20, 2017
Regards.
Hi LionSec,
Here’s some info on the current transaction fee algorithm.
It’s designed to help make DDoS too costly and thus prevent while at the same time keeping overall fees low.
Since there is no mining, but rather staking, then if fees were to spike in theory it would drive away users and lower the value of ADA…thus hurting the very stakeholders getting transaction fees since they would lose more from a drop in value vs. increase in fees.
Hopefully this is a better config for creating more long term value for all vs bitcoin and miners conflict of interest you noted re: transaction fees.
"HOW TRANSACTION FEES WORK
Whenever somebody wants to transfer an amount of Ada, some minimal fees are computed for that transaction. In order for the transaction to be valid, these minimal fees have to be included, although the sender is free to pay higher fees if he so wishes.
Please also read about transaction distribution below.
MINIMAL TRANSACTION FEES
The minimal fees for a transaction are calculated according to the formula:
a + b × size
where:
a is a special constant, at the moment it is 0.155381 ADA;
b is a special constant, at the moment it is 0.000043946 ADA/byte;
size is the size of the transaction in bytes.
This means that each transaction costs at least 0.155381 ADA, with an additional cost of 0.000043946 ADA per byte of transaction size. For example, a transaction of size 200 bytes (a fairly typical size) costs:
0.155381 ADA + 0.000043946 ADA/byte × 200 byte = 0.1641702 ADA.
The reason for having parameter a is the prevention of DDoS attacks mentioned above: even a very small dummy transaction should cost enough to hurt an attacker who tries to generate many thousands of them."
Hope that helps!
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Thank you very much for this detailed explanation. I’ll look at that link about Transaction Fees . regards