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Each Bitcoin transaction ends in a transaction cut up, as we all know: a) receiving quantity and b) transaction price. Transaction charges are often a couple of thousand satoshis. Then there’s c) the ‘change’ that I can management with my non-public key and that is still in my very own pockets.
Is not all of this leading to an ever-increasing fragmentation of UTXO’s?
One that would ultimately make funds not possible?
No, transactions may consolidate UTXOs. A transaction can have a number of inputs and a number of outputs. It’s (at the moment) 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 decreasing 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 will have a number of outputs, it’s trivially potential for a transaction to spend extra UTXO than it creates and thus cut back the worldwide UTXO depend.
Beside that:
- Change outputs will not be obligatory. Some wallets intentionally attempt to craft transactions that keep away from creating change outputs when potential.
- Transaction charges contribute to what miners might accumulate of their block reward. Typically, the whole reward is awarded to a single new transaction output.
