Why I Love Bitcoin’s Replace-By-Fee (RBF)

Welcome, welcome to One Minute Crypto! I'm your host, Chronos, and today, we're going to talk about the bitcoin feature known as Replace by Fee, or RBF for short This lets you replace a transaction you've sent out on the network if it hasn't been added to a block yet, by sending a new version of it with a higher fee

So let's say I'm receiving some bitcoin from you, you might be able to use RBF to take back the coins you sent, and send them back to yourself, if you're quick enough RBF has been heavily criticized, saying that it destroys our trust in unconfirmed transactions, but I actually like it, so in this video, I'm going to give you three reasons why Today's sponsor is Americas Cardroom, the most trusted US online poker site Use the bonus code "Chronos" and you'll double your first deposit, and get up to $50 in free cash! Deposit with your favorite cryptos at Americas Cardroom So the first reason I like RBF is that it's completely optional, and it's per transaction

So if I see a transaction coming in that's marked Replaceable, I know RBF is on, and it's not trustworthy until it's been added to a block So to say that the RBF feature is destroying that trust is wrong, because I can just ask the sender to disable RBF when they send their transation, and it's as if the feature never existed Secondly, even if RBF is disabled, you're still trusting the miners to use the original version of the transaction Miners don't have to honor a transaction that says "NO RBF" they can still replace it, so the RBF feature isn't really changing anything When it comes down to it, in every case, we really do have to trust until the transaction is confirmed in the blockchain

So that's why RBF isn't bad, but why is it good? Well, RBF is really useful, because you can just send it out with a low fee, and if it doesn't get confirmed by the time you want, you can replace it with the same destination address, but a higher fee And this is a great way to keep fees low It's a trick I've used when sending bitcoin to myself, or to an exchange, and I'm not in a hurry to receive it I'm sure you might have questions about all this, so go ahead and post them below the video, and I'll answer them there, and don't forget to subscribe I'm Chronos

Thanks for watching!