On-Chain Data Reveals Possible Bitcoin Confirmation Process Update for Binance

New on-chain data picked activity surrounding Binance’s consolidation transactions. As noted, the latest batch of these transactions underwent a fee-based substitution (RBF) shift, rising from 13.5 sts/vb to 56.4 sts/vb.

Although these transactions failed to “indicate BIP125 fungibility,” suggesting that Binance, the largest exchange in the world, could run the full RBF Bitcoin core that Peter Todd advocated.

RBF is a standard protocol in the Bitcoin network that allows the sender to increase the fee for an unconfirmed transaction.

The recent batch of Binance Merge Transactions exchanged fees from 13.5 to 56.4 sats/vb, although it failed to indicate that BIP125 could be replaced.

Binance is running @employeeFor a full core bitcoin RBF?

Or did they simply strike a deal with a mining pool? pic.twitter.com/JzztJ2P7ro

– mononautical June 1, 2023

Are you using Binance Bitcoin Core from Peter Todd’s Full-RBF?

Peter Todd, the famous Bitcoin Core developer, is known for his contributions to the transaction replacement policy, especially the “Full RBF”, which allows unconfirmed transactions to be replaced with a new transaction version that pays a higher fee.

With this coming to light, Binance may have agreed with a specific mining pool to make this change happen.
The mining pools that appear to be mining in transactions are AntPool and F2Pool, with blocks 792,440 and 792,442 attributed to the former and block 792448 associated with the latter.

Bitcoin Core v25.0 update

Binance’s actions coincide with the release of Bitcoin Core v25.0 on May 26.

The upgraded version brings a wealth of new features and bug fixes that promise to improve the user experience.

It is possible that Binance could benefit from improvements in this updated version, particularly in terms of transaction processing, mining pool functionality, or adjustments to fee policies.

Bitcoin Core 25.0 released!
Available from: https://t.co/t90gl3iifS
Release announcement: https://t.co/csoy0dZBjI

Bitcoin Core Project (bitcoincoreorg) May 26, 2023

Moreover, the new Bitcoin Core update reportedly contains changes to the RBF policies. This raises the possibility that Binance’s existing trading could serve as a test run for the new RBF functionality.

The full RBF policy, mentioned earlier in this context, may be one aspect affected by this update. The community is waiting for the full impact of Bitcoin Core 25.0 on the overall Bitcoin network.