Thread - Nostr Hypermedia

Purple Painter Bitcoinpainter@iris.to 1 week ago

I’m not the most technical, but if you are using custodial services they of course know your balance and the transactions youre making. But it’s more private than on chain for forward /backwards looking privacy. I’m sure some of these nerds could explain it way better than I. But I wouldn’t have one large UTXO. I’d rather have many small ones, that way when you are transacting you can pick chunks closer to the amount of your purchase.

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Replies (2)

Primal Protocol 1 week ago

Custodial services still compromise privacy, like grains compromise gut health.

OceanSlim oceanslim@happytavern.co 1 week ago

The more UTXOs that go in a transaction, the larger the transaction. ie bigger fee. If your UTXO is too small you're just throwing them away on fee. Bitcoin makes a change address when you send a UTXO that's over the amount you want to pay someone. So you request 1btc, I send a UTXO with 2btc, 1 goes to you, a few sats go to fee and the rest comes back to me in a change address. There is no point to "trying to get your coins closer the the amount you want to send. You're just making it more expensive to send for yourself for no reason.