Package Relay (BIP331)

Overview

Package Relay (BIP331) enables nodes to relay and validate groups of transactions together as atomic units. This is particularly useful for fee-bumping (RBF) transactions, CPFP (Child Pays For Parent) scenarios, and atomic transaction sets.

Specification: BIP 331

Architecture

Package Structure

A transaction package contains:

#![allow(unused)]
fn main() {
pub struct TransactionPackage {
    pub transactions: Vec<Transaction>,  // Ordered: parents first
    pub package_id: PackageId,
    pub combined_fee: u64,
    pub combined_weight: usize,
}
}

Code: package_relay.rs

Package ID

Package ID is calculated as double SHA256 of all transaction IDs:

#![allow(unused)]
fn main() {
pub fn from_transactions(transactions: &[Transaction]) -> PackageId {
    let mut hasher = Sha256::new();
    for tx in transactions {
        let txid = calculate_txid(tx);
        hasher.update(txid);
    }
    let first = hasher.finalize();
    let mut hasher2 = Sha256::new();
    hasher2.update(first);
    PackageId(final_hash)
}
}

Code: package_relay.rs

Validation Rules

Size Limits

Maximum Transactions: 25 (BIP331 limit)
Maximum Weight: 404,000 WU (~101,000 vB)
Minimum Fee Rate: Configurable (default: 1 sat/vB)

Code: package_relay.rs

Ordering Requirements

Transactions must be ordered with parents before children:

Each transaction's inputs that reference in-package parents must reference earlier transactions
Invalid ordering results in InvalidOrder rejection

Code: package_relay.rs

Fee Calculation

Package fee is calculated as sum of all transaction fees:

#![allow(unused)]
fn main() {
combined_fee = sum(inputs) - sum(outputs) for all transactions
}

Fee rate is calculated as:

#![allow(unused)]
fn main() {
fee_rate = combined_fee / combined_weight
}

Code: package_relay.rs

Use Cases

Fee-Bumping (RBF)

Parent transaction + child transaction that increases fee:

Package:
  - Parent TX (low fee)
  - Child TX (bumps parent fee)

CPFP (Child Pays For Parent)

Child transaction pays for parent's fees:

Package:
  - Parent TX (insufficient fee)
  - Child TX (pays for parent)

Atomic Transaction Sets

Multiple transactions that must be accepted together:

Package:
  - TX1 (depends on TX2)
  - TX2 (depends on TX1)

Code: package_relay.rs

Package Manager

PackageRelay

The PackageRelay manager handles:

Package validation
Package state tracking
Package acceptance/rejection
Package relay to peers

Code: package_relay.rs

Package States

#![allow(unused)]
fn main() {
pub enum PackageStatus {
    Pending,      // Awaiting validation
    Accepted,     // Validated and accepted
    Rejected { reason: PackageRejectReason },
}
}

Code: package_relay.rs

Rejection Reasons

#![allow(unused)]
fn main() {
pub enum PackageRejectReason {
    TooManyTransactions,
    WeightExceedsLimit,
    FeeRateTooLow,
    InvalidOrder,
    DuplicateTransactions,
    InvalidStructure,
}
}

Code: package_relay.rs

Validation Process

Size Check: Verify transaction count ≤ 25
Weight Check: Verify combined weight ≤ 404,000 WU
Ordering Check: Verify parents before children
Duplicate Check: Verify no duplicate transactions
Fee Calculation: Calculate combined fee and fee rate
Fee Rate Check: Verify fee rate ≥ minimum
Structure Check: Verify valid package structure

Code: package_relay.rs

Network Integration

Package Messages

PackageRelay: Relay package to peers
PackageAccept: Package accepted by peer
PackageReject: Package rejected with reason

Code: package_relay_handler.rs

Handler Integration

The PackageRelayHandler processes incoming package messages:

Receives package relay requests
Validates packages
Accepts or rejects packages
Relays accepted packages to other peers

Code: package_relay_handler.rs

Configuration

[network.package_relay]
enabled = true
max_package_size = 25
max_package_weight = 404000  # 404k WU
min_fee_rate = 1000  # 1 sat/vB

Code: package_relay.rs

Benefits

Efficient Fee-Bumping: Better fee rate calculation for packages
Reduced Orphans: Reduces orphan transactions in mempool
Atomic Validation: Package validated as unit
DoS Resistance: Size and weight limits prevent abuse
CPFP Support: Enables child-pays-for-parent scenarios

Components

The Package Relay system includes:

Package structure and validation
Package ID calculation
Fee and weight calculation
Ordering validation
Package manager
Network message handling

Location: blvm-node/src/network/package_relay.rs, blvm-node/src/network/package_relay_handler.rs

BLVM Documentation