RBF: Replace-By-Fee explained simply:

TLDR:
  • Transactions are sent to the mempool, awaiting confirmation
  • Low-fee tx can remain unconfirmed in the mempool.
  • Use Replace-By-Fee to resend the tx with a higher fee => this will improve its chances of being picked up by miners
  • RBF allows tx to be replaced in the mempool by setting nSequence to a value below 0xffffffff => This signals the transaction can be replaced with a higher-fee version.
132 sats \ 1 reply \ @Murch 10 Nov
This feels a bit outdated. More than 95% of the hashrate has adopted a full-RBF policy. Full-RBF in this context means that even transaction replacements are accepted for all transactions whether they signaled replaceability or not. More crucially, a replacement transaction has to both pay a higher feerate and a higher absolute fee than the original transaction to get accepted, which might be an interesting point to cover in a future explainer.
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Thanks for the context! I’ll put together an explainer on this later this week
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