I noticed this last night, while watching incoming Bitcoin transactions on Blockchain.info during the height of the price volatility. Perhaps this is a misunderstanding on my part, but I saw something interesting that I had not considered before (simplified from a lot of records I looked at):
Transaction A @ 10:01 PM
Txn fee: 0.0 BTC
Estimated time to confirmation: 36 hours (place in queue 3908)
Transaction B @ 10:02 PM
Txn fee: 0.001 BTC
Estimated time to confirmation: 59 minutes (place in queue 24)
Looking at the two, initially, I could not understand why one would be on track to confirm within the hour, while the other would take 1 1/2 days, until I noticed the difference in the transaction fees were different.
Given that Bitcoin’s Proof-of-Work design is built around mining for coins and and processing transactions to make money, it makes logical sense to me that a given transaction that included a fee would be expedited over a transaction that didn’t include a fee.
Is this an accurate summary of why those two transactions had such wildly different estimated confirmation times?
If it is true, and it seems like a major thing that people should know about, is this a place where Peercoin’s design is superior? From my understanding of the Peercoin mechanics, all transactions above a certain point include a transaction fee that is destroyed by the system, meaning that queuing would be handled by the order in which the transaction was processed, rather than by allowing certain transactions to be expedited at the detriment of others. To be able to say, “your Peercoin transactions will be confirmed quicker than any of the other currencies” has a lot of weight, if it’s true.
It’s very likely that I’m misunderstanding how the BTC transactions are being handled (or what happens on the PPC side, for that matter), and that I’m incorrectly blaming the transaction fee for the difference in processing time, but, if I’m not, is this an opportunity for Peercoin to continue to differentiate itself from competitors?