New on-chain data has uncovered activity around Binance’s merged transactions. As observed, the latest batch of these transactions have undergone a Replace By Fee (RBF) conversion, upgrading from 13.5 sats/vb to 56.4 sats/vb.

Although these transactions fail to “demonstrate BIP125 fungibility,” they do suggest that Binance, the world’s largest exchange, may be running the Full-RBF integration advocated by Peter Todd for Bitcoin Core.

RBF is a standard protocol in the Bitcoin network that allows senders to increase fees on unconfirmed transactions.

Is Binance using Peter Todd's Full-RBF to connect to Bitcoin Core?

Peter Todd, a well-known Bitcoin Core developer, is known for his contributions to transaction replacement policies, especially "Full RBF", which allows unconfirmed transactions to be replaced with new versions of the transaction that pay higher fees.

As this situation emerges, Binance may have agreed with a specific mining pool to implement this change. The mining pools that appear to be mining the transactions are AntPool and F2Pool, with blocks 792,440 and 792,442 attributed to the former and block 792,448 associated with the latter.

Bitcoin Core v25.0 Update

Binance’s move coincides with the release of Bitcoin Core v25.0 on May 26.

The upgraded version brings a lot of new features and bug fixes, which is expected to improve the user experience.

Binance may take advantage of improvements in this updated version, particularly in terms of transaction processing, mining pool functionality, or fee policy revisions.

Additionally, the new Bitcoin Core update reportedly contains changes to the RBF policy, which raises the possibility that Binance’s current trading is a test run of the new RBF feature.

The full RBF strategy mentioned before in this context could be one of the aspects affected by this update. The community awaits the full impact of Bitcoin Core 25.0 on the entire Bitcoin network.