How does Muun handle utxos?
As in, if I send 10 Lightning payments to my Muun wallet, am I holding 10 utxos?
Or does it not “consolidate” until I send to an on-chain address?
I don’t really understand how utxos work on Lightning so if anyone has a quick explainer reference I’d be grateful ⚡️🙏
No utxos with lightning. That is on-chain only.
I am not entirely clear about what information lightning nodes record of the transactions they receive.
I have my learning/work cut out for me then
Muun is a different beast since it does swaps in the background.
I believe that under the hood it converts anything received via lightning to a utxo.
Outside of Muun, your lighting channel is your UTXO in a multisig with your channel partner.
Whatever you send and receive is tallied up and when you close the channel you split that utxo into whatever that tally is at the end.
In short, it doesn’t matter how many lighting transactions, only your final balance matters.
Okay cool, that definitely helps with my understanding of LN in general.
So with Muun, if I send 5 Lightning transactions to it, would I end up with 5 utxos in my on-chain wallet?
If I then send 3 to an on-chain address, it’s three inputs to a single output; and then I send the rest via two LN invoices to a couple friends… does it take the other utxos, put them on LN channels, and send them out that way?
Lots of brain power here 🙃
Yeah that’s my understanding with lighting because as some people have argued here Muun isn’t a true lighting wallet.
It basically stores everything on chain and takes temporary custody of your sats to send via lighting.
This is why it does that seemingly cool thing where you can choose to send your Bitcoin over L1 on chain or L2 on lighting.
You might also notice that the lighting fees may be on the higher side vs using a conventional lighting node/wallet and I think it’s because of the onchain fees. This I am really just speculating on and someone please correct me if wrong.
The trade off with Muun being stupid simple is you don’t get access to utxo management.
Funny enough I use Muun to convert onchain to lighting to send to my self custody node.
