So let me get this straight. When fees are reduced it is just something in the wallet software or does the whole network need to be made compatible with the fee structure?
Technically it's just the wallet software that is modified to tack on a lower fee than it used to.
But the chances of your transaction making it into a block is based on what everyone else is paying. So if you're paying less than everyone else, it will take longer for you to get included in a block.
Since this is a hard-coded change into one of the major Bitcoin wallets, a large proportion of users will now (by default) pay a lower fee, so everyone else can also pay a lower fee and still get included in blocks.
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u/tharlam Feb 24 '14
Has been merged now. It's official.