No fee market with small blocks thanks to BlockPriority of BTCChina

[knight22]

http://www.ibtimes.co.uk/bitcoin-giant- ... rs-1529730

The service works by submitting bitcoin transactions sent to or from any BTCC wallet address directly to BTCC's mining pool for rapid confirmation. BTCC's mining pool accounts for approximately 13% of the global bitcoin network's hashing power.

BlockPriority prioritises all BTCC's customers' transactions, including those who pay zero transaction fees. Customers who pay lower transaction fees on other exchanges or wallet services may have to wait before the bitcoin network confirms their transactions, said BTCC.

[arnoudk]

So small blocks will lead to centralization in mining, wallets and exchanges. Great.

But not unexpected.

No fee market developing here. Just advantages for the big guys.

[creationlayer]

http://www.ibtimes.co.uk/bitcoin-giant- ... rs-1529730

The service works by submitting bitcoin transactions sent to or from any BTCC wallet address directly to BTCC's mining pool for rapid confirmation. BTCC's mining pool accounts for approximately 13% of the global bitcoin network's hashing power.

BlockPriority prioritises all BTCC's customers' transactions, including those who pay zero transaction fees. Customers who pay lower transaction fees on other exchanges or wallet services may have to wait before the bitcoin network confirms their transactions, said BTCC.

I'm confused wouldn't you want to send transactions from the BTCC mining pool to your wallet not the other way around?

[arnoudk]

Not if you are a wallet provider. Then you want all incoming and outgoing transactions to have priority.

Others will follow suit for sure and make deals with all large miners to process their transactions first.

I hope I am wrong. Because I would like my local client to still work with quick confirmations.

[Windowly]

I find it a little disturbing. . . great to be able to send without a fee but what about centralization? I hope the blockchain gets scaled fast.

[BitcoinXio]

I find it a little disturbing. . . great to be able to send without a fee but what about centralization? I hope the blockchain gets scaled fast.

It's natural evolution of the current conditions. If the blocks don't grow to allow for more tx's, people will think of other ways to make faster tx's. Im sure others will follow this new logic soon, which will create even more centralized hubs in the network; which gives even more reason to raise the block size.