# Effect of Bitcoin fee on transaction-confirmation process

arXiv: https://arxiv.org/abs/1604.00103 · HTML: https://mlsanity.com/paper/1604.00103/

## Key facts

- Cited by 2 papers in the map (data through 14 Oct 2026).
- First posted on arXiv 1 Apr 2016.

## Built on by (most cited first, 2 of 2)

- [Performance Evaluation, Optimization and Dynamic Decision in Blockchain Systems: A Recent Overview](https://mlsanity.com/paper/2211.15907/) (2022)
- [Comprehensive Modeling Approaches for Forecasting Bitcoin Transaction Fees: A Comparative Study](https://mlsanity.com/paper/2502.01029/) (2025)

## Abstract (arXiv)

In Bitcoin system, transactions are prioritized according to transaction fees. Transactions without fees are given low priority and likely to wait for confirmation. Because the demand of micro payment in Bitcoin is expected to increase due to low remittance cost, it is important to quantitatively investigate how transactions with small fees of Bitcoin affect the transaction-confirmation time. In this paper, we analyze the transaction-confirmation time by queueing theory. We model the transaction-confirmation process of Bitcoin as a priority queueing system with batch service, deriving the mean transaction-confirmation time. Numerical examples show how the demand of transactions with low fees affects the transaction-confirmation time. We also consider the effect of the maximum block size on the transaction-confirmation time.