Hi all,
If your balance is made up of 10 UTXO’s making 1BTC and you send 0.7BTC to someone, does that that clean up the UTXO’s? i.e. there was 10, you’ve sent 0.7 to someone, then received 0.3 (minus fee) back as a now singular UTXO? This making the next transaction cheaper?
Thanks
Hi @CookieBoy,
I’m also new to this, but this is how I understand what happens.
When you send 0.7BTC out of the 1BTC in your balance, you send the amount of UTXOs that equal 0.7BTC. In other words, the sum of UTXOs equal to 0.7BTC is what you send. When the sum of UTXOs can only be greater than 0.7BTC, the remaining amount would bounce back to you. Aside from the BTC you send, this doesn’t clean up your UTXOs. As for transaction fees, I don’t believe they don’t equate to how many UTXOs there are. Transaction fees are a way to outbid other users into getting your transaction into a block. The higher the transaction fee, the more likely a BTC miner will confirm your transaction and add it to the block.
Hope this was informative. I’m open to be corrected if something or things I said were inaccurate.