Basically, Bitcoin creates custom notes per transaction and doesn’t use common or fixed size notes. Instead of $5, $10, $20, $50, etc, you actually hold 0.38B, 5.74B, 9.67B, 21.27B.
When you try and pay a 28.00B, you need to use two UTXO minimum (in this example) - 21.27 + 9.67 = 30.94B - 28.00B, which means 2.94B change (ignoring a mining fee).
That’s pretty typical, but pretend you only have 30 UTXOs less than 1.00B. To make the 28.00B, you. Now need 29+ UTXO inputs, which each cost extra blockchain fees (as each adds more data). Instead of 2 UTXO, you need 29+ UTXO.
If you use low mining fee times to consolidate UTXOs, the cost per UTXO can be 20-50 times less. Instead of 100 sats/vB, it can be 5-10, or less.
wakoinc / Blake
npub1kt…rmrvj
2023-05-27 08:43:08
in reply to nevent1q…l3nl
Author Public Key
npub1ktw5qzt7f5ztrft0kwm9lsw34tef9xknplvy936ddzuepp6yf9dsjrmrvjPublished at
2023-05-27 08:43:08Event JSON
{
"id": "f07a7a2eb7b26a6308b4c83b584067ac08aaa27516b293470afd39f78d719698",
"pubkey": "b2dd40097e4d04b1a56fb3b65fc1d1aaf2929ad30fd842c74d68b9908744495b",
"created_at": 1685176988,
"kind": 1,
"tags": [
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[
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"content": "Basically, Bitcoin creates custom notes per transaction and doesn’t use common or fixed size notes. Instead of $5, $10, $20, $50, etc, you actually hold 0.38B, 5.74B, 9.67B, 21.27B. \n\nWhen you try and pay a 28.00B, you need to use two UTXO minimum (in this example) - 21.27 + 9.67 = 30.94B - 28.00B, which means 2.94B change (ignoring a mining fee). \n\nThat’s pretty typical, but pretend you only have 30 UTXOs less than 1.00B. To make the 28.00B, you. Now need 29+ UTXO inputs, which each cost extra blockchain fees (as each adds more data). Instead of 2 UTXO, you need 29+ UTXO. \n\nIf you use low mining fee times to consolidate UTXOs, the cost per UTXO can be 20-50 times less. Instead of 100 sats/vB, it can be 5-10, or less.",
"sig": "d61b5090214d7f2c3ca3ea66601934d55b8075a117378c70f4156d9ad8b4e04c42189df89944f5165bae07f34544aac88038645a83d94f879f7747f0b402f0e0"
}