Understanding CPFP (Child-Pays-For-Parent)
Boring explanation: CPFP is a method to confirm stuck transactions by adding a higher fee to incentivize miners.
How does it actually work? Let’s break it down with visuals 👇
1️⃣ Alice sends 1 Bitcoin to Bob.
2️⃣ She attaches a very low fee, so the transaction gets stuck
3️⃣ Bob creates a child transaction.
He spends Alice’s Bitcoin and adds a high fee to incentivize miners.
He spends Alice’s Bitcoin and adds a high fee to incentivize miners.
4️⃣ Miners confirm both transactions.
They include Alice's and Bob's transactions to collect the high fee.
They include Alice's and Bob's transactions to collect the high fee.
Follow for more illustrated Bitcoin guides! ⚡