can you explain to me what this means? still fuzzy on all this.
Discussion
On chain Bitcoin is spread across the blockchain in addresses and and confirmed on blocks as unspent transaction outputs (utxo). Your wallet displays an aggregate total of all these utxo that are spread across the blockchain and in various addresses. They are all separate chunks of sats.
So let's say you want to send .01 Bitcoin but you have utxo denominated in .001 utxo sets. To send the .01 your wallet will take ten sets of .001, and send them all to one address. The more utxo, the more data required which can raise your fee.
If you had .1 BTC in a single utxo and wanted to send .01, the entire .1 is sent, .09 is returned to your wallet on a new address and .01 is sent to the recipient....
I may have made that more confusing and poorly worded than needed 😂
i think i understand. they’re just parts of the whole in your wallet and consolidation makes them whole?
In a way. I just had some utxo that were smaller, like 50,000 sats. So I chose a some of small ones and sent them all to one address. I still have separate chunks. I just made multiple of those smaller unspent transaction outputs into a larger utxo.
There's nothing wrong with having a bunch of utxo sets. But I wanted to get rid of some the smaller ones for future planning in a high fee market
got it. thanks mane