Dear CloverPool users,
As the BTC market heats up and Bitcoin transaction volume is increasing day by day, CloverPool has recently launched several practical Bitcoin tools such as Bitcoin Transaction Accelerator (CPFP) and address monitoring to improve the efficiency of user transaction operations. You can click here to view it.
Being one of the oldest and most solid blockchains, Bitcoin can only handle so many transactions per second. When there is a surge in usage, there will be many pending and stuck Bitcoin transactions. If your Bitcoin transaction is stuck, and you’re the recipient, you can clear it using CPFP (child-pays-for-parent). （Tutorial）
What is Child Pays For Parent (CPFP)?
The term Child Pays For Parent, or CPFP, refers to a transaction that allows us to push confirmation of a “stuck” transaction in a cryptocurrency mempool. This is because it has a very low mining fee and therefore has no priority for miners.
Although its concept seems very similar to fee replacement transactions (Replace By Free) they should not be confused with this one. Since CPFP transactions do not invalidate the previous transaction, but instead, it must be confirmed together with the new transaction created. Furthermore, in CPFP the secondary transaction is only created to motivate miners to process and confirm both transactions, and thus be able to receive the associated commission. Therefore, they are known as “the child pays for the father”.
How do Child Pays For Parent transactions work?
When a transaction remains unconfirmed on the Bitcoin blockchain, while new blocks appear, it is mainly due to the payment of an insufficient fee. It is especially noticeable when the network is congested. In these times of congestion or high demand, miners prioritize only those transactions that have a high or minimally acceptable commission rate. So those transactions with a very low commission may be stagnant and unconfirmed in the bitcoin mempool for several days, and even weeks. Leaving its recipients waiting for the transferred funds for an indefinite time.
To solve this, the method is implemented Child Pays For Parents (CPFP), where the user of the unconfirmed transaction can create a new transaction, known as a child transaction. In it you will have to put a transaction fee much higher than the original transaction. This new child transaction will be created using the output address of the original transaction.
Recall that in Bitcoin transactions, all outputs must be spent. This is possible thanks to the fact that the first transaction generated a cryptocurrency sending transaction. But at the same time we returned a certain amount of unused cryptocurrency to a direction of change under our possession. This amount of unused cryptocurrencies is called an unspent transaction exit or UTXO. In short, a CPFP is used by the output of the parent transaction to generate a new transaction with a higher mining fee in order to speed up the confirmation of the initial transaction.
So, if that operation is unconfirmed, the user can create a child transaction (CPFP) associated with the parent transaction, where he will send those laps or change to the address of the parent transaction. The important thing is that this new transaction will have a very attractive commission rate for miners and that covers the commission necessary to process both transactions.
The moment miners see the secondary transaction, they will be drawn to confirm it to collect the associated commission fee. But they will not be able to confirm said transaction independently, without first confirming the main transaction first. So they will evaluate and verify the secondary transaction to see if it has the necessary fees to cover both transactions.
Once the miners verify this, they will choose to add the main transaction to the next mined block, so that they can also confirm the secondary transaction. To collect the commission fee included in this, and which is acceptable to process both transactions.
How to accelerate a stuck Bitcoin transaction?
To perform CPFP, you must be the recipient of the Bitcoin transaction you wish to speed up.
In many cases, this means both the sender and receiver can perform a CPFP to speed up the transaction.
As the sender, if you hold the private key of the output address (usually the address for change), you can generate the sub-transaction through the CPFP transaction accelerator, and realize the transaction priority confirmation by increasing the sub-transaction miner fee.
As the receiver, if you hold the private key of the output address (but users normally do not hold the wallet private key of the centralized exchange), you can generate the sub-transaction through the CPFP transaction accelerator, and speed up the transaction by increasing the sub-transaction miner fee.
CloverPool’s CPFP solution is based on the idea that miners always choose which transactions they want to place in each block based on relative rewards. Miners will always choose a transaction with a higher fee over a transaction with a lower fee.
Bitcoin is based on a blockchain. Later transactions depend on earlier transactions. That’s why the bitcoin protocol does not allow for a child transaction to be included in a block before its parent transactions have been added.
Clike here to see BTC Transaction Accelerator (CPFP) Tutorial.
How long will it take?
Bitcoin (BTC) blocks are mined every 10 minutes on average. Using this method, it may take a block to have your transaction mined. Setting your fees higher will directly affect the speed at which your transaction is mined.
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