Best summary on UTXOs I can come up with:
Imagine you have a pair of pants with N pockets of infinite capacity. The pants are your wallet, and the pockets are your addresses.
Transferring small amounts of BTC into an address is like stuffing one of these pockets full of loose change: it'll all fit, but it's going to be very time consuming (expensive) if you ever try to use those coins to buy anything.
Vs
Filling that same pocket with the largest denomination of bills (BTC) possible. This makes the purchasing process much easier (cheaper) when you go to spend that same amount of money.
Not sure if I've heard this analogy somewhere else or if it's an organic thought...
Salty Cracker
npub1rx…lqp96
2024-09-10 11:33:36
Author Public Key
npub1rxak2es99eawktcvdx4kfzsu3ynntd8rmayz7jkprhslkj7ze3qs0lqp96Published at
2024-09-10 11:33:36Event JSON
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"content": "Best summary on UTXOs I can come up with:\n\nImagine you have a pair of pants with N pockets of infinite capacity. The pants are your wallet, and the pockets are your addresses. \n\nTransferring small amounts of BTC into an address is like stuffing one of these pockets full of loose change: it'll all fit, but it's going to be very time consuming (expensive) if you ever try to use those coins to buy anything. \nVs\nFilling that same pocket with the largest denomination of bills (BTC) possible. This makes the purchasing process much easier (cheaper) when you go to spend that same amount of money. \n\nNot sure if I've heard this analogy somewhere else or if it's an organic thought... ",
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