When sending Bitcoin from one user to another, transaction fees are attached, just like when sending money from one Nigerian bank to another.
Every bitcoin transaction must be added to the blockchain, the official public ledger of all bitcoin transactions, to be considered completed or valid. Miners do this validation — powerful computers that makeup and connect to the network.
However, transaction priority is dependent on the fees you pay, i.e., how quickly you want to get a confirmation for your transaction traffic, i.e., if a lot of people are trading around the same time and the size of the transaction.
For example, if you want your transaction confirmed quickly, you can choose the high-priority option and pay higher transaction fees to make your transaction faster. If you do not mind waiting for later transaction confirmation, you can choose low-priority and pay less in transaction fees.
These fees are calculated automatically and shown to you at the point of Bitcoin transfer on the Pandar App.
The Bitcoin transaction fees are determined by the Miners who process and validate the transaction, not Pandar.
Transferring Bitcoin on Pandar
To send Bitcoin on Pandar, you can choose three levels of transaction priority fees, and this will determine the amount of time it takes to process and confirm your transaction.
The transaction Priority levels are:
- Low Priority
- Medium Priority
- High Priority
This is how Bitcoin transaction works:
When you decide to send Bitcoin, and the transaction is broadcasted, it initially goes into the memory pool or mempool before being included in a block. From this mempool that Miners choose which transactions to process, they prioritize transactions with higher fees.
Please note that miners prioritize transactions with higher fees.
If the mempool is complete, the fee market may turn into a competition: such that traders will start to compete to get their transaction processed by adding higher fees. When the market reaches its maximum equilibrium fee that users are willing to pay, the miners will work through the entire mempool to bid. Once the traffic decreases, the equilibrium fee will go back down.
