What is CPFP and How to Use it in Liquidium?
Nov 10, 2024
Ever had that sinking feeling when a Bitcoin transaction just… sits there? No confirmations, just stuck in the blockchain traffic jam. Enter Child-Pays-for-Parent (CPFP), the Bitcoin “fast lane” trick that can save you from transaction delays.
What is CPFP?
CPFP, or Child-Pays-for-Parent, is a technique that lets you “bribe” (well, incentivize) miners to process your transaction faster.
If the initial transaction fee was too low, CPFP allows you to create a follow-up “child” transaction with a higher fee, which entices miners to include both transactions in the next block. Think of it as a “buy one, get both” deal for Bitcoin miners who need a little push to get your original transaction confirmed.
When and Why Do We Need CPFP?
Sometimes, especially during peak Bitcoin traffic, transactions just don’t move. This can be particularly frustrating in time-sensitive situations on Liquidium, like:
Loan Activation: You’ve finally found a great loan offer, but it’s on hold because of a slow transaction. CPFP gets that loan moving ASAP!
Loan Repayment: If you’re trying to repay your loan before the deadline but the payment’s dragging, CPFP steps in to make sure it clears on time.
Claiming Collateral: If you’re a lender and need to claim collateral from a defaulted loan, CPFP helps get that process quickly for confirmations.
In short, whenever a transaction is stuck, CPFP is the tool that nudges it into motion!
How to Use CPFP on Liquidium
Liquidium makes CPFP super user-friendly. Here’s how to give your transactions a turbo boost:
Access Your Profile: Head to your Liquidium profile and find the transaction that needs a jumpstart.
Choose the Transaction: Select the specific transaction, whether it’s “Activating,” “Repaying,” or “Unlocking.”
Click ‘Speed-up’: Look for the “Speed-up” button (it’s basically the “let’s do this” button for CPFP).
Set a Higher Fee: Pick a new, higher fee rate in sats/vByte. The higher you go, the faster your transaction will be confirmed. Think of it as tipping the waiter to bring your food out first.
Confirm: Hit confirm, and voilà! You’ve created a “child” transaction with a higher fee that coaxes miners into prioritizing both transactions
The legendary James has crafted a quick video just for you, walking through how to use CPFP in Liquidium. Check it out here: Watch now!
With CPFP, you’re in control of your transaction speed, making it the perfect fix for keeping your loans on schedule in Liquidium. So next time a transaction slows you down, just remember: CPFP has your back. Happy borrowing and lending!