In OP_CTV's case shared UTXOs allow users to group their txs under predefined conditions.
It's like setting rules for a shared fund where participants agree on how funds are spent in future txs.
Also, it can boost LN by supporting channel factories allowing many users to share a single Lightning channel.
All of this can greatly increase efficiency.
I still don’t really understand how this works on a technical level.
A bunch of users coordinate through some wallet or protocol and group their transactions into one UTXO with defined spending conditions which don’t have to be unrolled on chain? How often would they have to update that agreement and under what circumstances would it all actually get unrolled on chain?
