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The Bitcoin Mempool: Relay Network Dynamics

  • The dynamics of the relay network in Bitcoin are affected when nodes run different relay policies.
  • Homogenous relay policies allow transactions to propagate, while heterogenous policies introduce challenges.
  • The Bitcoin relay network operates on a flood-fill architecture for transaction propagation.
  • Introduction of filters in relay policy could hinder transaction propagation efficiency.
  • A minority of nodes not implementing filters can ensure transaction propagation to miners.
  • Preferential peering logic can help nodes with similar relay policies connect efficiently.
  • Even a tolerant minority of nodes can guarantee successful propagation of specific transactions.
  • Miners prioritize profit and will find ways to include desired transactions if relay network filters exist.
  • Relay policy cannot censor consensus valid transactions that users pay for.
  • Consensus changes are required to block transactions if they are universally seen as undesirable.

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