I really detest the concept of utxos. Like, WTF? Why? UTXO management is also stupid to have to do.
This is the worst part of BTC. Ugh.
#randomthoughts #notanexpert #utxosaredumb
Discussion
accounts are shittier tho
IMO the worst part is the dumbass default single change address
what it should be is a series of roughly powers of two sizes down to a dust limit
eg, you make a payment from one UTXO of 10000 putting 2000 to one address
then it should make change of 4k, 2k, 1k, and two final ones of 500 each
then when you go to spend later, you ask for some amount the chances are high that you can construct that payment without a change output
so you make many change outputs, in the hope that some future transactions may not require making more change outputs? What's your objective, privacy?
I am buying BTC to store value as the dollar collsoses. I want to be able to spend BTC in the future. Now I'm learning that I won't be able to. This seriously pisses me off.
Just consolidate
I cannot. There's no good way for me to do that because I didn't know about any of this and it's so spread out that I just can't.
If you do multiple inputs to one receive addy, it might cost you a few dollars even with lots of inputs.
Maybe hop on corny chat in a bit and we can hear what’s going on
Have you used Sparrow?
Yes but not like you can enjoy from your phone! I love to track 📈
I have used #sparrow and I have a problem. I sent some sats but I don’t see those sats on sparrow 😳 if used a different address to try again and used the master key to watch the sats on Blue wallet and I saw they are there but I don’t how to use it. Then I sent another sats to another sparrow address, and then copy the master key and it was another, so now I see the sats in two different Blue wallets. But why I can’t see the sats on Sparrow wallet 🥺 I’m worried
Maybe it’s the node your sparrow wallet is connected to. When you lose connection it can’t update. Can’t see the bitcoin on the addresses you are watching
I know nothing about the nodes 😳 I’ve just created a wallet and send sats to the receiving addresses 😫
Dis I lose them? Or there is a way to recover them?
If you have a private key that controls those addresses then you did not lose them, you just need your wallet or sparrow or whatever to be synced up with a node that is relatively caught up.
I don’t know what I have to do 😫
UTXOs actually don’t exist. They are a higher-order construction.
Utxo management might suck a bit but in general the concept is really cool.
Our wallets should be called coin purses. We have a bunch of little coins that we melt together in order to make a transaction. Sometimes we make an extra little coin to give back to us for change.
yeah, the current typical spend and change pattern is terrible for privacy though
IMO, the change should create several randomly sized progressively smaller units out of the change side and then in the future spends can clear out a set of them, picking the oldest ones to decrease correlation, and merging them to the new UTXO
i use coin control interface on bitcoin core and i like how it lets me pick out which to use and i generally try to spend the oldest ones first, and i've started to sometimes create my own change addresses manually, but i think they should be broken up into several pieces by default then often i just pick out a set of old ones that get close to my desired spend and only one has to be split after that
i mean, there's probably various models for this, where you can configure a model to optimize by some bias towards small transactions or bigger ones, and this could be automatically prompted by the mempool fee rate curve, so it prefers to break a big one into two when fees are high, or spend old, close to exact sum smaller ones when fees are low
improving the privacy of wallets probably there is many ways to make this work even better
lightning and Ark also hint at some interesting ways that we could increase privacy with other people in a more automatic way, especially with the help of a social graph like nostr
I know nothing about utxo 🥺
Every UTXO is a piece of data that all the nodes have to carry around. UTXOs are actually a kind of efficient way to manage all of the data by not having them broken up. 100 $1 vs 1 $100. By the network incentivizing the consolidation of UTXOs it keeps the UTXO set (all existing UTXOs) smaller than it otherwise would be. This makes running a node easier. This makes the network more secure and decentralized. Yeah there is more to it than this, but you only need to consolidate on chain.