Speeding up bitcoin transactions?

0

I am writing an app which trades bitcoins and one of the biggest problems I have run into is that it takes so long to move them from one wallet to another. I thinks it due too mtgox and other sites using a 6 confirmation system before registering that data.

I have two thoughts on how the time might be brought down and I am wondering how feasible each is.

  • Process my own bitcoin transactions. Would it be possible to route my transactions through my own computer so that it gets top priority?

  • Use fewer conformations before excepting a transaction as complete. Would the system allow me to use a bitcoin if it has only has 4 conformations?

Is there another way that I'm not thinking of?

Loourr

Posted 2013-04-11T15:44:11.067

Reputation: 3 022

Answers

2

The security of the Bitcoin system depends on time passed since the transaction was included in a block. Let's call this confirmation 1.

Are you having trouble getting your trades into a block, or want to have more confirmations?

The fact remains is that you should wait 1 hour after the transaction is included in a block before spending that output. That one hour just happens to roughly correspond with 6 blocks.

So why do we wait 1 hour? It's because we want to make reasonably sure that no one out there has a computer strong enough to spend the output twice, and causing a split in the ledger.

I wouldn't plan on basing my business on short block times, and would instead only use the block chain for deposits and withdrawals from your private system.

If you're having trouble getting your Tx included in a block the easy solution for that is to pay transaction fees, or run a private mining rig that will accept such transactions.

goodguys_activate

Posted 2013-04-11T15:44:11.067

Reputation: 11 898

I was under the impression that it was not about time, and more about lodging it in the blockchain. But are you saying that I can in fact use my own rig to speed up transactions? – Loourr – 2013-04-11T17:14:04.123

The only reason you would need your own rig is if no other pool accepted your transaction. Do you intend to not pay a network fee? – goodguys_activate – 2013-04-11T17:17:03.683

The network fee is trivial. My goal is to minimize the time it takes me to send bitcoins from one of my wallets to another. When my transaction gets sent to a pool I assume its put into some queue and then gets executed when its my turn. I'm wondering If I had my own minner, would I be able to make transactions faster by essentially cutting line? – Loourr – 2013-04-11T17:21:21.163

A single miner won't do it, but may help. The best bet is to send the Tx to a large pool, and possibly add miners to it. – goodguys_activate – 2013-04-11T17:41:06.183

For what it's worth, I did send money from Mt Gox, to myself, and after 1 confirmation I sent it to another user. Example: Part 1 c99186ea5285166ea8ad75388f42acd60990b8748a45d1ff0f45271a1cb6f749 part 2 4d6d4eedb8d98c626bd1450d45055fa610cd05494c79f7e655043456e38a6b5d – goodguys_activate – 2013-04-11T17:42:40.473

assuming its a good miner perhaps this one with a 25 GH/s

– Loourr – 2013-04-11T17:42:41.347

That is a good one, but it won't reliably get you always in the front of the line (for free). The best bet for you sounds like just pay the Tx fee and work with software that doesn't require 6 confirmations. If you really want a miner check here for my ebay listings ;)

– goodguys_activate – 2013-04-11T17:45:39.547

let us continue this discussion in chat

– Loourr – 2013-04-11T18:38:54.147

thanks. And how were you able to get access to you bitcoin after 1 conformation on mtgox? It wont even register for me till all 6 are done – Loourr – 2013-04-11T18:40:11.510

Asked: 2013-04-11T15:44:11.067

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Active: 2017-12-07T17:34:00.340