druska

/*****************************************************************************
 *                QuantCup 1:   Price-Time Matching Engine
 *
 * Submitted by: voyager
 *
 * Design Overview:
 *   In this implementation, the limit order book is represented using
 *   a flat linear array (pricePoints), indexed by the numeric price value.
 *   Each entry in this array corresponds to a specific price point and holds
 *   an instance of struct pricePoint. This data structure maintains a list

gavinandresen

The reference implementation of Bitcoin (bitcoind/Bitcoin-Qt) has ad-hoc code for dealing with transaction priorities and fees. In particular, there are several 'magic' constants that are chosen by the core developers, setting policies for minimum transaction fees, minimum transaction priorities and minimum output sizes.

This document describes the algorithms used by my 'smartfee' branch to replace most of those arbitrary constants with values that will rise and fall based on transaction volume and miners' willingness to include transactions in their blocks.

Fee/Priority estimation

The reference implementation needs to know two things to provide a good user experience:

1. If a transaction has priority X, is it likely to be included in the next N blocks?
2. If a transaction has a fee of Y, is it likely to be included in the next N blocks?