THELOGICALINDIAN - Andreas Antonopoulospublished an absorbing articlelast August on the aftereffect absolute attestant Segwit may accept on the unspent transaction achievement set UTXO set I didnt accede with the abstracts in that commodity and anticipation about autograph about it aback in August Which I didnt Now that the commodity has sailed up as hot being afresh on the interwebs I got a additional chance
The commodity notes: “The incentives created by fees amount because they affect the behavior of wallets” (emphasis mine).
Also read: Network Alternative Bitcoin Unlimited Closing In On ‘Opponent’ Segwit Proposal
An archetype was presented with two transactions, A and B. A with 3 multisig inputs and 2 outputs, and B with 2 multisig inputs and 3 outputs.
The college the Net-new-UTXO of a transaction the added the UTXO set will abound due to this transaction. We can see that after Segwit, transaction B (with accomplished Net-new-UTXO) is the cheapest transaction, but with Segwit, transaction A (with the everyman Net-new-UTXO) is the cheapest one.
The point that the commodity makes from this is that incentives will about-face from authoritative affairs with absolute Net-new-UTXO to authoritative affairs with abrogating Net-new-UTXO. Or at atomic the incentives will about-face appear beneath Net-new-UTXO. The commodity concludes: “After absolute witness, the transaction fees adjust with the allurement to abbreviate new UTXO creation”.
This is area I get lost. While this is absolutely absorbing data, I’m attractive at it from the angle of a wallet. The wallet charge obey its user’s will. The user wants to pay a bill, so the wallet will somehow aggregate inputs and actualize outputs to accomplish that will.
The wallet wants to do this cheaply, so it will alone use two outputs. One for the bill and one for the change. There’s not abundant best there, behindhand of whether Segwit is acclimated or not.
The catechism again comes bottomward to selecting inputs. All inputs amount money to include, so every added ascribe will aftereffect in a added big-ticket transaction. If Segwit is used, the amount is at a 75% discount, but the bread alternative should not change abundant back the wallet still wants to accumulate the cardinal of inputs low.
My cessation is that Segwit does not affect the behavior of wallets.
There are, however, some UTXOs that accept so little amount that you would lose money to accommodate them. They would amount added in fees than the amount they provide, causing a net accident on the spendable achievement amounts. Many of those UTXOs will be pushed over the bend to the assisting ancillary back Segwit is used, because they are now cheaper to include. It ability be this aftereffect that the commodity refers to, but I don’t anticipate so.
If any of you (I’m attractive at you Andreas!) accept added acumen into this, amuse let me apperceive by commenting on this article.
Fix Might Actually Increase UTXO set
Frankly, if I’m appropriate above, the UTXO set ability absolutely access with Segwit. An achievement which use 2-of-3 multisig, will booty 34 bytes with Segwit instead of today’s 23 bytes.(See BIP141.) The access in bytes is due to the attestant calligraphy assortment actuality 32 bytes instead of the 20 bytes calligraphy hash. The scriptPubKey becomes,
0x00 0x20 [32-byte-hash]
instead of,
OP_HASH160 0x14 [20-byte-hash-value] OP_EQUAL
This access in assortment admeasurement is a aegis admeasurement to assure adjoin future collision attacks since we are abutting the absolute for back a collision advance on 20 byte hashes is feasible. Though I’m not abiding why a blow advance would be a concern. Shouldn’t we alone accept to anguish about preimage attacks? Anyway, this access has not abundant to do with Segwit back it’s a aegis admeasurement that would possibly be bare anyhow in the approaching for P2SH, and P2PKH as well. It was aloof a acceptable befalling to bastard in the fix for P2WSH.
Of course, this depends on how the mix of acquittal types will comedy out. Some types will be abate with Segwit, for archetype a P2WPKH (pay-to-witness-public-key-hash) and a P2PKH (pay-to-public-key-hash, the best accepted acquittal type), counterbalance 22 bytes and 25 bytes respectively, which is a net win of 3 bytes per output.
Don’t get me amiss on all this. I am a huge fan of Segwit and I would like to see it actuate ASAP, but the referenced commodity has kept me puzzled for too continued now.
Thank you for your patience.
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