“Your consolidation transaction” above is key.
If you send one transaction with three UTXOs to an address, the default would be that you get one utxo at this address= (sum of the 3 utxo values) - fee.
If you had a shop, for example, pointing to one bitcoin address for each different transaction, the customer purchase UTXOs would accumulate in your wallet separately. You could THEN send them all in one transaction to consolidate to one (or more if you specify).
Ah!! This is where I was being unclear.
I’m not sending a consolidation transaction to the address.
I’m imaging making three transactions over time (perhaps from a mining pool without rotating addresses, for example) so that there are three separate transactions with the identical destination address.
This “accumulation address” then holds multiple UTXOs, which need to be consolidated on an outgoing spend, right?
Or do the UTXOs “become one” by nature of being sent to an address that already held older coins?
Yestr. Think of it as a “wallet” that holds your corn. Not an “address”. One wallet, many addresses.
Oh that much I understand. I’m picturing sending three utxos in three separate transactions, all to the same address (ie no address rotation). I know when I spend the total value from that address it will use all three utxos and they will combine into a single UTXO when they land at their new destination.
But what I’m not sure about is whether they’re treated as three UTXOs when I initiate that new transaction? Ie if it’s a single fee or a 3x fee to smelt the coins lol
Gonna test it out later 🫡
I think you’re mixing utxo and address definitions. You can have multiple utxos on the same address and thats what would happen in your example.
Oddbean new post about login | logout