May mining fees

May mining fee error

As you may well be aware, the bitcoin network has been experiencing high network fees over the past few months — in May 2017, blockchain transaction fees reached €10 a transaction.

Cubits, as well as many other bitcoin companies, had to introduce fees for bitcoin withdrawals, as these blockchain transaction fees were too much for any company to economically bear.

At Cubits, we use multi-signature addresses and cold storage as part of our security features. To provide this maximum security, regular maintenance and testing is required, to ensure that there are no unforeseen issues with the system.

During the recent spike in blockchain transaction fees, our tech team was updating and optimising many of our internal applications, in order to lower mining fees, whilst keeping us in a position to process our customers’ bitcoin withdrawals at the speed they’ve come to expect of us.

At the time of these optimisation processes, some applications were modified to calculate transaction fees per byte, rather than per kilobyte, in order to avoid paying for the rounding of the transaction size.
Unfortunately, as this modification was being implemented, during a regular cold wallet to hot wallet transaction, one of the applications incorrectly calculated the fee. The resulting transactions were broadcast to the blockchain with much higher fees than would have been expected, even for the high fee environment at the time.

These transactions were mined by the, Bixin and BTCC mining pools.

Fortunately, the kind folks at agreed to refund the mistakenly paid fees. In addition, as a token of goodwill, both Cubits and have donated a portion of these fees to Code to Inspire – an Afghanistan based coding school for women, promoting modern skills to advance some of the least privileged women in society.

Big thank you to Tyler and the whole Bixin family, for helping to also return our wrongly paid fees.

— The Cubits team

Cubits Editorial Team
Cubits Editorial Team

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