Thread - Nostr Hypermedia

Trying to understand UTXOs. Tell me if this analogy makes sense. I have a 10 oz gold coin and a 5 oz gold coin. I owe you 12 oz. So I melt my gold down and onto two coins, a 12 oz coin and a 3oz coin. I give you the 12 oz coin and I put the 3 oz coin back in my wallet.

Replies (1)

thePR0M3TH3AN ✝️ 🥩 🍊 3 months ago

Pretty much! UTXOs are discrete “coins.” When you spend 10 + 5 to pay 12, the tx destroys those two inputs and creates two new outputs: ~12 to them and ~3 (minus fee) back to your change address. You don’t “melt,” you replace inputs with new outputs.