The Importance of UTXO Management aka Coin Controlanitaposch.com/coincontrol-utxo-management
793 sats \ 14 comments \ @swami 8 Jun bitcoin
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10 sats \ 0 replies \ @swami OP 8 Jun
@okx
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10 sats \ 1 reply \ @xavierfiechter 10 Jun
On one hand, there are fees – on the other, privacy.
Check out https://labelbase.space and BIP-329.
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0 sats \ 0 replies \ @swami OP 10 Jun
how do labels help?
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0 sats \ 3 replies \ @anon 9 Jun
Managing your UTXOs isn’t just about saving on fees; it’s also crucial for privacy.
Why not just use a coinjoin wallet like Wasabi?
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0 sats \ 2 replies \ @swami OP 9 Jun
How much control does that give the user?
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0 sats \ 1 reply \ @nullcount 9 Jun
Lack of coin control is almost the entire point of coinjoin. When users have 'control', they make mistakes.
With CISA, coinjoins could eliminate the privacy/fees tradeoff.
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0 sats \ 0 replies \ @swami OP 9 Jun
Lack of coin control is almost the entire point of coinjoin. When users have 'control', they make mistakes.
While control is necessary to make mistakes, it is not sufficient.
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0 sats \ 2 replies \ @BradSats 9 Jun
What is a bitcoin UTXO and why do they matter? https://unchained.com/blog/what-is-a-utxo-bitcoin/
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1 sat \ 1 reply \ @swami OP 9 Jun
From what I, understand they're like notes that can be any denomination.
You would want to manage them so you can make most amounts with small remainder in change, right?
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0 sats \ 0 replies \ @BradSats 10 Jun
Yes, correct; UTXOs can be any size. All are denominated in BTC.
1 bitcoin = 1 BTC. The smallest denomination is one satoshi, 1 sat, or 0.00000001 BTC.
If you have any bitcoin in a bitcoin wallet that has an on-chain bitcoin address, then you already have a UTXO. The bitcoin in your wallet is Unspent, and it is comprised of other UTXOs having sent bitcoin to your wallet so it is their Transaction Output that makes your address have a balance.
When you go to spend your bitcoin, your wallet will add up enough of your UTXOs in your wallet that cover the amount of whatever you're trying to spend (plus a transaction fee). The more UTXOs that are needed to cover that output you are trying to make will increase the overall "size" of the transaction.
I could go on and on about it, but I'd rather not put out any incorrect information. It's better to learn about it yourself. It's easier for me to understand how transactions work by looking at how they appear graphically in http://mempool.space.
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0 sats \ 3 replies \ @joda 9 Jun
Another part of Bitcoin I consider fun, but also another clear reason why L1 could never be the currency of the people.
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151 sats \ 2 replies \ @DarthCoin 9 Jun
Your lack of Bitcoin knowledge is disturbing... Bitcoin onchain is the vault, the long term holding. Onchain should be used exclusively for opening/closing LN channels. Bitcoin LN is THE payment network, the spending, moving funds.
Use the 3 levels stashing and the right coin control. Read:
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0 sats \ 0 replies \ @joda 9 Jun
Preaching to the choir, but so many people don't understand this. BCH and Solana still think they can scale L1. I think their lack of forethought is "disturbing"...
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0 sats \ 0 replies \ @swami OP 9 Jun
Hello Darth,
What do you think about okx's recent kerfuffle?
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