27 sats \ 2 replies \ @bitgould 14 Jun 2022 freebie \ on: Noob question: Is it a good idea to consolidate a bunch of UTXO's, or not? bitcoin
Spending coins together in the same transaction creates a permanent link between them on the public ledger.
next block fees are in fact relatively expensive right now. I see at least 4 blocks waiting to be mined.
Existing CoinJoin and Swap services are not foolproof. You will end up with more (Toxic!) change you won't be able to consolidate. Wait and study the pitfalls so you can transact privately. No need to merge coins now while everyone is panic trading.
I'm working on something that will let you queue coins to consolidate over time. If you're patient you may even earn non-custodial yield. Kind of like lightning routing fees. Those who need to make a private transfer quickly pay. Those who wait earn.
Toxic change explained: https://chaincase.app/words/unlink-bitcoin
Will your app work kinda like Joinmarket? What are the similarities? What about the differences? When do you think it will be published? How does it work, and can I contribute to its' development?
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I said too much too soon. I'm writing some ideas about the market dynamics of bitcoin liquidity. The supply side (node operators, JoinMarket makers, custodial lenders), and demand side (whirlpool, samourai, joinmarket takers, liquidity ad takers) are disparate. A zero-knowledge marketplace could bring them together.
I'll publish on the https://chaincase.app newsletter. stay tuned
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