I am about to launch a collection of Bitcoin NFTs, but I want to make sure that my calculations are correct and that I have the right amount of Bitcoin in my wallet.
How do I calculate the cost of creating inscriptions on Bitcoin for different data sizes?
BRC-20 token and Bitcoin NFT minting/deployment service providers use a formula that is not very precise, as it can vary depending on factors that they have not shared with us.
When deploying or minting on Bitcoin, you must pay a network fee that is proportional to the size of the data being inscribed.
The following formula can help you calculate the network fee:
Total Network fee (sats) = Fee rate (sats/vB) * Size of transaction (vB)
The fee rate is the amount of sats you are willing to pay per virtual byte. The size of the transaction is the number of virtual bytes used by the transaction.
The network fee is used to incentivize miners to include your transaction in a block. These miners will upload your data on Bitcoin blockchain.
Miners will prioritize transactions with higher fees, so when you want your transaction to be processed quickly, you should pay a higher fee.
This formula can help you calculate the size of transaction:
Size of transaction (vB) = Total bytes of data being inscribed/3.7 Error: ±4-15%
This converter can be used to convert data from kilobytes (KB) or megabytes (MB) to bytes.
Fee by Size
Some ordinals service providers charge a fee based on the size of the transaction. The fee is calculated by multiplying the network fee by the 0.047.
Fee by size = Network fee * 0.047 Error: ±2-6%
We should take into account the possibility of error, as Ordinals service providers use rough calculations.
Some ordinal service providers also charge a service fee of 1,999 sats. This fee is used to cover the cost of providing the service, such as the cost of running the servers and the cost of developing the software.
Sats In Inscription
Each inscription has a certain amount of sats associated with it. The amount of sats is determined by the people when they mint or deploy the inscription. You can change the amount of sats associated with an inscription during its creation.