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Each Bitcoin transaction ends in a transaction break up, as we all know: a) receiving quantity and b) transaction price. Transaction charges are normally a couple of thousand satoshis. Then there’s c) the ‘change’ that I can management with my personal key and that continues to be in my very own pockets.
Is not all of this leading to an ever-increasing fragmentation of UTXO’s?
One that would finally make funds inconceivable?
No, transactions may consolidate UTXOs. A transaction can have a number of inputs and a number of outputs. It’s (presently) not potential for the inputs to limit what and what number of outputs there are, neither is it potential for outputs to limit what and what number of inputs there are. So a transaction can have extra enter than outputs, thereby having a lowering impact on the UTXO set measurement.
Additionally, transaction charges don’t produce a UTXO. They’re the distinction between the sum of the outputs and the sum of the inputs. Miners are allowed to extend their block reward by that distinction, so every transaction doesn’t create a UTXO for its price.
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No, since transactions can have a number of inputs simply as they’ll have a number of outputs, it’s trivially potential for a transaction to spend extra UTXO than it creates and thus scale back the worldwide UTXO rely.
Beside that:
- Change outputs should not necessary. Some wallets intentionally attempt to craft transactions that keep away from creating change outputs when potential.
- Transaction charges contribute to what miners could accumulate of their block reward. Typically, your entire reward is awarded to a single new transaction output.
