Introduction to XRB Nano (Previously RaiBlocks). Part 3

Fees and coin circulation on XRB vs Bitcoin

On the Bitcoin network, users do not have to include a fee. However, miners also do not have to include any transactions into the bitcoin blockchain blocks that they mine. For creating a block on the Bitcoin blockchain, miners get a reward. Therefore, even if a block that a miner on the Bitcoin network creates has all transactions with zero fees, the miner would still get a reward from the network for created the block.

When Satoshi Nakamoto created the Bitcoin network in 2009, the reward for mining the first 210,000 blocks of the bitcoin network was 50 bitcoins per block.

In the beginning of February of 2018, the Bitcoin network had a little over half-a-million blocks. You can see how many blocks the network has created by the time you are reading this article by visiting https://blockchain.info/ The top number in the “height” column, right under the word “height” would be the number of the last Bitcoin block as you are reading this. If you click on that number, you will see the detailed information about the block, including how many transactions it includes, how much users paid in fees to send the transactions, who mined the block, and all the information about the transactions, including receiving addresses and amounts.

After being equal to 50 bitcoins for the first 210,000 blocks on the Bitcoin blockchain, the reward split by half and became 25 bitcoins per block for the next 210,000 blocks. This means that the network was adding many more coins to circulation in the beginning of its existence than it is now or that it will ever add in the future. In fact, as of the beginning of February of 2018, the total number of bitcoins in circulation was over 16.5 million coins out of 21 million bitcoins that the network will create during its existence. This means over 80% of bitcoins that will ever be in circulation have already been mined. The reward kept splitting in half and will keep splitting every next 210,000 blocks. The next split is estimated to happen in June of 2020. You can see the countdown clock to the next halving of the reward, the total number of bitcoins in circulation as you are reading this article, the total number of bitcoins left to mine and many other interesting facts and stats by visiting www.BitcoinBlockHalf.com

When the Bitcoin network started to become extremely popular in 2017, the transactions were appearing on the network faster than miners could include them in the blocks. Miners get 100% of the fees that users can choose to include with their transactions. As the demand for including transactions into the bitcoin blockchain from the users of the network outgrew the supply of how quickly the miners could include the transactions, the miners started choosing the transactions that included a fee. For users, this meant that if they wanted for their transaction to go through quickly, they now needed to include a fee. This led to fees on the Bitcoin network increasing very significantly. For example, on March 1, 2017, the average transaction fee on the Bitcoin network was USD$0.875. On December 1, the average fee was a little over $6. You can see a chart with average transaction fees on the Bitcoin network since its inception in 2009, here: https://bitinfocharts.com/comparison/bitcoin-transactionfees.html

 

Transactions on the XRB Nano/Raiblocks network

Because on the XRB Nano/Raiblocks network, each user has a blockchain, XRB Nano/Raiblocks can have users that transact with each other independently and the entire network doesn’t have to process their transactions. The users do not need to coordinate with each other how and when they send the funds and there is no central copy on the network that needs to synchronize itself when the new transactions occur. Additionally, there is no central authority on the XRB Nano/Raiblocks platform that restricts the financial transactions between the users of the platform.

Here’s why and how this works: In the example above, where user A received 10 coins, sent 20, received 15, the sequence doesn’t really matter because the user has received 25 coins and has sent 20.

This means that to solve the issue of debt and negative balance, all that is required is to arrange the transactions in a different way. In the following sequence the amounts are the same as in the example above, the transactions are the same, and the starting and final balances are the same, yet the ordering is different, and so the problem doesn’t exist: user A has a balance of 0, gets 10 coins (the balance is now +10), gets 15 coins (the balance is now +25) sends 20 (the balance is now +5).

On the XRB Nano/RaiBlocks network, there is no mining. The developers of the network have created the full supply of coins and distributed them in October of 2017. The total supply was 133,248,290 XRB.

Neither websites nor miners can add new XRB to the circulation. Some websites offer to pay users for using their computers to mine XRB. Typically, such websites are in reality mining Monero, which is much easier to mine compared to Bitcoin or Ether, and can, indeed, be mined using a personal computer. Such websites mine Monero, then convert Monero to XRB on an exchange and then pay out dividends to their members in XRB.

As of the beginning of 2018, ticker XRB (capital XRB) represents 1 million xrb (lower-case xrb) or 1Mxrb. 1Mxrb equals to 10^30 raw. Raw is the smallest unit of the XRB Nano currency, similarly to how Satoshi is the smallest unit of bitcoin. 1 xrb = 10^24 raw.