What causes rapid UTXO set growth? \ stacker news ~bitcoin

808 sats \ 12 comments \ @nikicat 4 Aug 2023 bitcoin

I have noticed a relatively rapid UTXO set growth starting from mid-April. Can you explain what has caused it?

52 sats \ 7 replies \ @nerd2ninja 4 Aug 2023

Ordinals

10 sats \ 1 reply \ @endothermicdev 4 Aug 2023

This. Just look at some of these on chain transactions generated by - stamps alone. Many of them create dozens of utxos per image. 👀 As long as we're bidding up block space I'd prefer not pollute the utxo space as well - it adds a real cost to validating nodes.

0 sats \ 0 replies \ @nikicat OP 4 Aug 2023

True. I hope this PR will be merged and projects like STAMPS stop doing this.

0 sats \ 0 replies \ @nikicat OP 4 Aug 2023

Inscriptions don't cause excessive utxos

0 sats \ 3 replies \ @realtrader 4 Aug 2023

I'm having trouble understanding what UTXO means, when you have a little time, can you write to me in a way that maybe I can understand?

When writing I recommend you to think that I am 6 years old to facilitate my understanding, I thank you in advance!

6 sats \ 1 reply \ @Zepasta 4 Aug 2023

deleted by author

0 sats \ 0 replies \ @realtrader 5 Aug 2023

I believe I managed to understand.

The correct and network safe way to make a 0.3 BTC transaction is to follow these steps, correct me if I'm wrong.

Example: My UTXO is 0.9 and I need to make a transfer of 0.3, after this transfer there will be a balance left and what should I do after the transaction is generate a new address and send the rest to this new address? so i have a new UTXO of 0.6 btc?

And that?

3 sats \ 0 replies \ @nerd2ninja 4 Aug 2023

Hmm well, when you send Bitcoin, you're actually using the receivers pubkey to chain that bitcoin to a locking script.

So kid gloves, Everytime you send Bitcoin you're writing a note to that person that says they have x number of bitcoin. Each note is a utxo. You can have 1 note that says you have 100 sats or you can have 100 notes that each say you have 1 sat. In each case you have 100 sats, but in one case you have 1 utxo and in the other case you have 100 utxos.

10 sats \ 1 reply \ @nullcount 4 Aug 2023

I thought it was caused by Stamps. Inscriptions do not bloat the UTXO set very much because they are prunable. Stamps are not prunable because they live in the UTXO set. But they also don't get the witness discount that inscriptions enjoy.

0 sats \ 0 replies \ @nikicat OP 4 Aug 2023

You're right, as Rijndael pointed out Stamps baremultisig with many outputs causes this

0 sats \ 0 replies \ @ceife 6 Aug 2023

However, a rapid UTXO (Unspent Transaction Output) set growth can be influenced by various factors in the cryptocurrency space. Some potential causes could be increased transaction activity, the launch of new projects or tokens, changes in network usage, or updates to the underlying blockchain protocol. To get up-to-date and accurate information about the recent UTXO set growth, I recommend checking reliable cryptocurrency news sources or blockchain analytics platforms.

0 sats \ 0 replies \ @03f8b8f4cd 4 Aug 2023 freebie

Ordinals Inscriptions