Author: Moral Agent 2017-07-21 20:17:39
Published on: 2017-07-21T20:17:39+00:00
Bitcoin's unbounded UTXO growth is unscalable, leading to a proposal to limit the growth of the UTXO set. Under this proposal, miners would be forced to generate blocks that are UTXO neutral and prioritize transactions based on that algorithm. Users who want to generate many outputs would need to find someone with many inputs to consolidate and create tumble-bits. A market would develop for charging people to create UTXOs and paying them for disposing of UTXOs. Some argue that this proposed solution does not improve scalability, as it implies that bitcoins cannot last forever. However, in practice, only lost or forgotten keys result in lost bitcoins. Additionally, block size determines blockchain size, which can be safely pruned, but UTXO size cannot be safely pruned at present.
Updated on: 2023-06-12T03:45:23.564051+00:00