ivarojha

bitcoin

End user is not ready for UTXOs

This is a good suggestion! We are working with some trustworthy sellers to try this out.

True that! It's also quite often that a user comes back because their crypto deposit was "on hold" for unexplained reasons on a custodial platform. 

tinkering code [localcoinswap](https://localcoinswap.com) and [spendcrypto](https://spendcrypto.io)

@ivarojha's bio

I work on a non-custodial p2p Bitcoin platform. Imagine Bisq in a browser.

Almost everyday, our users complain about high fees on the Bitcoin network. And we tell them it's actually pretty decent these days. 

The reason they find it high is because they've got a bunch of UTXOs. Like in hundreds. For context, here's how our escrow works. Escrow txns spits out two UTXOs, one for the escrow and another for the platform fee. If for some reason, the trade gets canceled, user gets back both UTXOs. If it does go through, the buyer gets the escrow UTXO. All-in-all, you end up with a stash of a whole bunch of UTXOs if you've been trading long enough.

Now when they have to spend these UTXOs, the fee appears higher than a normal txn because of high tx size based on the inputs UTXOs chosen. We've tried explaining this but 9/10 users do not want this. They want us to get rid of the UTXO system (basically, don't broadcast txns on chain, just hold BTC custodially) and let us withdraw at nominal fees. We are obviously not gonna go that direction.

We've also tried getting them to consolidate at low fee days, but nah, it's still too expensive. In the end, we end up losing these users to other custodial platforms. 

do you even multisig?

An an individual, nah. As an escrow service provider, 2/3 multisig is the way.

UTXO Management: can you verify it? 

muteness11

Are your UTXOs split across different addresses or one address? I assume the complexity is due to different addresses. But yeah, you can still verify it. For single address, mempool.space is the way to go. For multiple addresses, you'll need a better way.

After having built a client-controlled wallet for BTC, I have to say, UTXO is both beautiful and ugly. 

What are your favorite “Buy It For Life” products?

A good mechanical keyboard. Bought a Das keyboard in 2012. And it's still going. This thing keeps getting better with time!

https://mempool.space/address/bc1p5j4nhktx5a37xycryhl9h32pr4wsyktuejzqfn80q6hcd68pthrs87cr96

First, it splits bitcoin into tiny utxos in single txn. Then it sends those small utxos to another address `bc1q8ycmtjmkrg5nj2delk6t4hmz8yzqx5l4f8arlr`

What's happening? What's their end game?

What's the purpose of the txns on this address?

P2P trading platform LocalCoinSwap moves to 100% non-custodial trading... 👍

SatoshiNakanodo

Posted later [here](https://support.localcoinswap.com/hc/en-us/articles/7509902697500-LocalCoinSwap-is-Transitioning-to-100-Non-Custodial-Trading)