Bitcoin CPFP Experience – Child Pays for Parent
If you have ever been in a position where you were stuck waiting for days on a Bitcoin transaction to confirm because the sender did not pay a high enough transaction fee, then you understand the importance of the Bitcoin CPFP feature that has been implemented. The Bitcoin CPFP feature, or Child Pays for Parent is a feature which allows the receiver of a Bitcoin transaction to spend the unconfirmed funds they are expecting. The reason this is helpful is because if you are waiting on a transaction that is stuck because the transaction fees are too low, you can simply send the unconfirmed funds to a different wallet address, with a higher transaction fee. The Bitcoin miners will pick-up the new transaction, with the higher fees, and buy default, the unconfirmed transaction gets picked up as well. Both transactions will confirm in the same block and your funds will get confirmed. In this way, waiting for days to get your Bitcoin transaction confirmed are a thing of the past, thanks to Bitcoin CPFP.
Understanding How Bitcoin CPFP works
First, the bitcoin CPFP feature is only beneficial to the receiver of a Bitcoin transaction. Let us take a situation that I found myself in recently. I needed to move money from one of my wallets to another and being in a hurry, forgot to adjust the transaction fee amount and sent the transaction with a fee that was extremely below the minimum recommended transaction fee amount. After two hours, when I had not yet received a confirmation on the transaction, I went to investigate and found my mistake.
Before the Bitcoin CPFP Feature was implemented, I would have been stuck waiting for a miner to eventually pick it up or for the transaction to be dropped from being broadcast to the network, which could have taken up to 3 days. However, with the Bitcoin CPFP feature, all I had to do was send myself the Bitcoin that was unconfirmed again, only this time, with a higher transaction fee. When the new transaction gets broadcast to the network, the higher transaction fee will give it a higher priority with the miners. Because this new transaction is dependent upon the older transaction getting confirmed first, the miner picks up both, at the same time.
The transactions are both confirmed within the same block and the wallets are updated respectively to show that money was received and sent from the first wallet and received in the second wallet and all balances are accurate.
My Bitcoin CPFP Example
In my personal experience with the Bitcoin CPFP feature, I was attempting to send $137.40 USD worth of Bitcoin to myself. In the original transaction, I only included a transaction fee of approximately $0.35 USD, which was way too low. Here are the details of both transactions, along with inks to the blockchain data:
At 5 hours with 0 confirmations on the original transaction, I created a new Bitcoin CPFP Transaction with the following details:
Total Input: 0.02062272 BTC ($135.76)
Total Output: 0.02047934 BTC
Fees: 0.00014338 BTC (~ $0.95)
Fee per byte: 63.442 sat/B
Received the first Confirmation at 13 Minutes after broadcasting the Bitcoin CPFP transaction.
Total balance after all was said and done:
0.020426 ($134.80 USD)
Bitcoin CPFP Solves problems of Stuck Transactions
The Bitcoin CPFP feature allowed me to take a stuck Bitcoin transaction and get it pushed through on the network, effectively putting an end to transactions that get stuck due to transactions fees that are too low. In the end, you may end up paying a bit more in transaction fees, but it is worth the extra pennies to get your transaction picked up and your Bitcoin available to you.
In the case, like I had, where you are sending money to yourself, it is nothing more than simply forwarding funds to a new wallet, but you can do the same thing if you are waiting to receive funds from someone else who did not include a high enough transaction fee. You can also perform the Bitcoin CFPF feature by creating a transaction to send to someone else, in a case where you need to send the Bitcoin as payment to another party.
In any situation, the receiver of a Bitcoin payment that is not confirmed due to transaction fees being too low can utilize the Bitcoin CPFP feature to get the transaction unstuck, the Bitcoin confirmed and spendable in your wallet.
Bitcoin CPFP Tips
It is important that the wallet you are using allows you to spend unconfirmed funds. If this is not an option that your wallet supports, then you will have difficulties in creating the Bitcoin CPFP transaction. To get around this, you need to be able to access the private keys for your bitcoin wallet. If you cannot access the private key for your wallet and the wallet you are using does not allow you to spend unconfirmed funds, the you will not be able to use the Bitcoin CPFP feature at all.
If you can get your private keys, then simply get a wallet that does allow you to spend unconfirmed funds and load your private key into the new wallet. BitPay allows you to spend unconfirmed funds and loading private keys of other wallet addresses is easy. BitPay is the wallet I used to perform the Bitcoin CPFP transaction, as well.
Another tip, when using the Bitcoin CPFP feature is to make sure that you include a transaction fee that is higher than necessary when creating the CPFP transaction. As you can see in my example above, I included a much higher transaction fee. You want to do this to ensure that the Bitcoin Miners will pick up your transactions. Remember that they have to get the first transaction, which got stuck in the first place because there was not enough of a transaction fee for the miner. So, be sure to include enough of a transaction fee to satisfy both transactions at a level that the bitcoin miners will see as sufficient.
Bitcoin CPFP Conclusion
The Bitcoin CPFP feature is a great feature that was added to the Bitcoin network almost a year ago. It was never intended specifically for getting transactions that did not have a high enough transaction fee from being stuck on the network, but it has proven to be an excellent feature for doing just that. Sometimes, as I did, we overlook simple things and rush to get the transaction sent and once that is done, it used to be too late to fix it. Now, while it still cannot be fixed in the traditional sense, it can be corrected. Including the transaction fee at an amount that will entice the Bitcoin miners to include your transaction in the next block, getting your transaction the needed confirmations that will allow you to spend your money. This is something that most of us take for granted and just assume will be handled by our wallets. However, sometimes things do not always work out as we plan, so a feature like the Bitcoin CPFP can be implemented to get us back on track.
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