I still haven’t fully grasped what those are. 🤦🏻♂️
Discussion
i like to think of utxos as individual bills in my wallet, i buy somthing that cost 3$, i can give the cashier either 3 1$ bills or i can give them a 5, either way they keep that bill 'its destroyed' and give me change, a new utxo.
strictly just for understanding the utxo model has alot of other stuff thats over my head, but i think this is the req knowledge, at least one of the most important
So sort of like a receipt?
No not really.
They are the 'bills' in my terrible analogy.
Unchained has a good explainer
Right on. Thank you.👊🏻
Basically in bitcoin there is a theoretical "bill" like a dollar bill for every amount between 21 quadrillion and .00000001. So when you send bitcoin it creates a bill in that amount in the recipient's address, we call that received "bill" a UTXO: unspent transaction output.
Awesome, thank for the further clarification, now I just need to get my old brain to accept it.I bookmarked it just in case. 😂 Thanks again, appreciate it. 👊🏻
No prob 👊
Set up your wallet so you can receive zaps!
I like the coin analogy. Your wallet is a bag of utxos (coins) of all different amounts.
If you buy a chocolate bar with a 20 btc coin and get 19.999 btc in change then you just doxxed how much bitcoin you have to the vendor.
but I don't send 20 btc coin and get 19 in change back. I send just 1. the vendor can see into my wallet because it's open for anyone to see but they have to look with mempool dot space or whatever. the transaction confirmation doesn't expose more than the 1 btc coin, in this example.
the 20 sized utxo was an example…
I get that, but when I send btc , im not sending 20 & getting 19 back.
replace with any amount. instead of 20 btc it could be 200k sats. the amounts are irrelevant .
a utxo can be as small as it wants but alot of node software prevents you from going below what is known as the dust limit.
It's probably the worst analogy possible, but you could think of UTXOs like ecash tokens. 😂
Sure but you know the next question.....
What's ecash.
Just some advice, when trying to explain something, don't use a term you'd then have to further explain.
But I see your angle dawg
Oh, I agree with you 100%. My comment was largely in jest, although it does kinda work. 😂
My go-to analogy is comparing UTXOs to gold coins. When you spend one, it is melted down, a small portion is taken by the network for the transaction fee, and new coins are minted from the remaining amount that are then provided to the recipient/s, and or returned to you if change is due.
If your recipient requires more than the value of a single "coin" you hold, you send multiple and they are melted down, and re-minted and distributed in the denominations you set when creating the transaction.
Lollll I was going to say something along the same
Utxo’s are unspent pieces of Bitcoin. Like having a $20 and a $5 bill in your wallet. You DONT have $25 you have 2 separate bills… you must use 1 or both to spend them. They are a “Digital bill” that has not been spent yet ❤️
And the key here is… more utxo’s in your transaction when you send the BTC later, to buy hodl butter, the more expensive it may be depending on demand. Sat/vb. Always check mempool.space transaction fees before consolidating.
You might be getting confused here based on the wallet you’re using… The blockchain itself tracks ALL utxos and knows which ones belong to your wallet. But on your end if your using a simpler wallet like muun for example you won’t SEE the utxo stack. Whereas if you used Sparrow wallet it will clearly list your utxos. Overall… don’t worry about it ❤️
Think of bitcoin as a material which is sent as powder collected in sachets. Each sachet is locked by a key-protected mechanism in a way that, when it is unlocked, the whole sachet gets destroyed and can not be recovered.
At that time you need to collect (almost *) all the powder in one ore more different sachets and lock each of them with a similar mechanism to the one you just opened (of course, the key for each of them may be different).
UTXO = the intact sachet, still locked
Powder (or better, indivisible atoms) = satoshis
Transaction = the process of destroying UTXOs and create new UTXOs with satoshis
* = some satoshis need to be left on the table for the miners' vacuum cleaners, in order to tempt them and confirm the transaction for you.