Adopting Bitcoin Cape Town

Transaction pinning has been a longstanding concern, particularly BIP-125 Rule #3 pinning, where a large, low fee-rate, transaction prevents the confirmation of a small, high fee-rate, transaction. While replace-by-fee-rate has been long known to be a solution for Rule #3 pinning, it has been thought to have unavoidable DoS attacks and incentive issues.

Here we will show that a variant, One-Shot Replace-By-Fee-Rate, fixes these DoS attacks and miner incentives sufficiently well to be implementable in Bitcoin Core.