The Bitcoin Optech newsletter provides readers with a top-level summary of the most important technical news happening in Bitcoin, along with resources that help them learn more.
This week’s newsletter celebrates the lock-in of the taproot soft fork, describes a draft BIP for improving transaction privacy by varying the fields used to implement anti fee sniping, and features an article about the challenges of combining transaction replacement with payment batching.
Replace By Fee and batching are two important tools for any enterprises directly interacting with Bitcoin’s mempool.
For example, batching customer withdrawals may save on fees for the enterprise, but will likely make child pays for parent , but it exposes their customers to potential confusion as their withdrawal transaction updates in their wallet.
In the base case, combining RBF and a single, static batch carries a simple combination of the complexities that RBF and batching carry discretely.
This enables the service provider to give users the experience of an instantaneous withdrawal while still retaining much of the fee savings from doing large batches of customer withdrawals at once.
There are many strategies to this type of additive RBF batching.