The cryptocurrency market has always been buoyed by its proponents, especially the many who are themselves involved in ensuring the mass adoption of digital assets. One such luminary is Andreas Antonopoulos, a popular Bitcoin bull and author of Mastering Bitcoin.
In a recent video uploaded by him, Antonopoulos elucidated on the concept of manually constructing transactions with multiple inputs, with a user query of “whether the process is done by the blockchain.” The Bitcoin proponent stated,
“You can conduct the process with a variety of wallets that allow you to construct transactions. With multiple inputs. Electrum wallets and other web-based wallets are good examples of platforms that give you the liberty to control transactions. Just to clarify, the process is done by the wallets and not by the blockchain.”
Antonopoulos added that the constructing wallets are based on an algorithm and if a user needed more than one payment because of possessing smaller amounts, then the wallet will construct transactions with payments. He informed users that this method is called ‘coin selection,’ and it greatly helps in the movement of transactions.
The concept of coin selection was previously in the news after BitGo, the cryptocurrency security startup, released its new technology, ‘predictive UTXO management,’ aimed at cutting cryptocurrency fees. Mark Erhardt, one of the spearheads of the technology, had claimed,
“What we’re doing here is addressing high-traffic wallets. Some of our clients get lots of lots of deposits into exchanges. And these enterprises need to sweep up these on-chain transactions.”
Andreas Antonopoulos further touched upon the concept of change on the blockchain, where he explained that Bitcoin transactions outputs can only exist in two states: spent or unspent. He stressed on the fact that there is no scenario for a half-spent transaction.
The Bitcoin bull ruffled a few feathers recently when he said that Bitcoin’s scalability problem will always exist. He spoke on the premise that solving one layer of issues would only lead to the emergence of other issues. In his words,
“..and you can’t, in the beginning, solves the problem for the end there is no end and also if you prematurely optimize if you try to solve scale problems for a scale that doesn’t yet exist you shift the problem somewhere else in the case of cryptocurrencies.”