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Satoshi Gazette
Glossary

Fee rate

What a transaction pays per unit of block space: its fee in satoshis divided by its virtual size, written sat/vB. Miners fill blocks by it, not by the fee alone.

Protocol and network

Definition dated

also feerate · sat/vB · sats per vbyte

A fee rate is the fee a transaction pays divided by the block space it takes. The fee is what its inputs hold minus what its outputs pay, in satoshis; the space is its virtual size in vbytes. A block holds at most four million weight units, a million vbytes, so a miner filling one earns most by taking the transactions that pay most per vbyte.

That is why the Network tab prints fees as sat/vB and never as an amount per transaction. The same fee rate costs a one-input payment and a hundred-input consolidation very different totals.

The figures on the desk are one node's view. mempool.space estimates the rate that would clear in the next block from the transactions its node holds; another node, with another mempool, could estimate differently, and no estimate is a quote.

Common misreadings3

  • People say

    A bigger fee always confirms sooner

    Precisely

    Miners rank by fee per virtual byte. A large fee on a large transaction can rank below a small fee on a small one.

  • People say

    A fee estimate is the price of the next block

    Precisely

    An estimate is one node's forecast from its own mempool. Miners build their own templates, and the queue changes with every new transaction.

  • People say

    Fees are quoted in sats per byte

    Precisely

    Since SegWit, block space is metered in weight. sat/vB divides by virtual size, which counts each witness byte as a quarter.