Bitpie Wallet Enables Sending USDT Onchain Transaction Without BTC Miner Fee

1. Why Do You Need to Pay BTC While Sending USDT ?

More and more people are using wallet to manage their USDT rather than keeping them in an exchange. However, if you are sending USDT via a wallet, you should be asked to pay some bitcoin as miner fee. This is because USDT is a cryptocurrency asset issued on the Bitcoin blockchain via the Omni Layer Protocol(Use OP_RETURN in Bitcoin transaction to store USDT transaction information). Therefore, an USDT transaction is actually a bitcoin transaction. Consequently, it needs to pay a bit of bitcoin as the miner fee for an USDT transaction.

2. It's really Troublesome!

But this has brought a lot of troubles to the USDT wallet users. As a lot of people have not aware of this. A typical scenario is when someone want to send their USDT, people found bitcoin is needed in same wallet which they don’t have.

As a leading wallet serving over 2 million users around the world, we have a large number of USDT users. One of the most frequently asked questions is about the miner fee of USDT, like “why couldn’t I send USDT in my Bitpie Wallet to other place? Why I need bitcoin to send USDT?”.

3. What’s the Good News?

Now, the good news is — in the latest version of Bitpie wallet, a new model of miner fee to send USDT is initiated by us — “Users are able to directly pay USDT instead of BTC as a miner fee when sending USDT”. This will greatly reduce the usage threshold of USDT users. For USDT users and project teams, it is much more convenient. You only need to have USDT in your wallet and you can send USDT anytime!

4. How?

Someone might be curious about how can we do it this way from a technical perspective? It is known that Bitcoin is based on UTXO model. Bitcoin transaction are composed of inputs and outputs. All inputs are bound to the previous unspent outputs. This is the standard UTXO model. Since there are more than one input for each transaction, it allows us to provide the user an input as the user’s miner fee, and then we will charge the user the USDT as the cost of the bitcoin miner fee.

Moreover, we will use our own hedging engine to convert the USDT miners paid by user to Bitcoin to supplement the bitcoin miners paid by us for the user. Thus, the entire operation is completed and finally the initiative of “USDT as a miner fee” is achieved.

It is easy to say than do. We have overcome many restrictions and difficulties. For instance, we need to construct multiple transactions to separate the server and the client for respective signatures; another example is, considering security, at each level, we need to add security check logic. Plus, Bitpie has a complete set of secure blockchain cloud platform — chaincloud.com, we are able to provide users with such server-client-hybrid signature transactions. In total, we realize the “use USDT as a miner fee when sending USDT”.

So, from now on, when users send USDT, it is optional to select whether to pay USDT or BTC as the miner fee.

Note: As a follow-up, We will publish a separate article to elaborate the rationale of this mechanism from a more technical perspective.

Find us on:

Twitter Facebook Telegram Telegram Hong Kong Telegram Bitpie News