what's going on at that address?

flatfly (OP)

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what's going on at that address?

August 18, 2014, 06:48:30 AM
Last edit: August 18, 2014, 04:04:52 PM by flatfly

#1

Could some explain what's the point of these transactions?

https://blockchain.info/address/1KFHE7w8BhaENAswwryaoccDb6qcT6DbYY

Seems like coins just keep going out and back into the same address - only 1 output, and 1 input.

Example:
https://blockchain.info/tx/21e9c728ceb47450e7098c14208183c0c951e0b210dc4bbbb0a647e31aa2e033

How would that be useful? Am I missing something?

BurtW

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Re: what's going on at that address?

August 18, 2014, 05:04:51 PM

#2

I think they are "consolidating" all the coins they have mined in to one large UTXO so that when they pay the miners in the pool the transaction is one large UTXO to many, many outputs instead of the alternative without consolidation: many mined blocks of about 25 BTC to many, many outputs to all the miners. The alternative to consolidating the mined blocks into one large UTXO would cost more to send because it would be a much larger transaction.

Just a guess.

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flatfly (OP)

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Re: what's going on at that address?

August 18, 2014, 10:09:29 PM

#3

Quote from: BurtW on August 18, 2014, 05:04:51 PM

I think they are "consolidating" all the coins they have mined in to one large UTXO so that when they pay the miners in the pool the transaction is one large UTXO to many, many outputs instead of the alternative without consolidation: many mined blocks of about 25 BTC to many, many outputs to all the miners. The alternative to consolidating the mined blocks into one large UTXO would cost more to send because it would be a much larger transaction.

Just a guess.

Thanks, that's what I vaguely suspected too, but I wasn't sure.

jl2012

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Re: what's going on at that address?

August 19, 2014, 02:16:21 AM

#4

Quote from: flatfly on August 18, 2014, 06:48:30 AM

Could some explain what's the point of these transactions?

https://blockchain.info/address/1KFHE7w8BhaENAswwryaoccDb6qcT6DbYY

Seems like coins just keep going out and back into the same address - only 1 output, and 1 input.

Example:
https://blockchain.info/tx/21e9c728ceb47450e7098c14208183c0c951e0b210dc4bbbb0a647e31aa2e033

How would that be useful? Am I missing something?

It's 4 inputs and 1 outputs. Turn on the Advanced mode in blockchain.info

Donation address: 374iXxS4BuqFHsEwwxUuH3nvJ69Y7Hqur3 (Bitcoin ONLY)
LRDGENPLYrcTRssGoZrsCT1hngaH3BVkM4 (LTC)
PGP: D3CC 1772 8600 5BB8 FF67 3294 C524 2A1A B393 6517

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Re: what's going on at that address?

August 19, 2014, 02:25:51 AM

#5

Quote from: BurtW on August 18, 2014, 05:04:51 PM

I think they are "consolidating" all the coins they have mined in to one large UTXO so that when they pay the miners in the pool the transaction is one large UTXO to many, many outputs instead of the alternative without consolidation: many mined blocks of about 25 BTC to many, many outputs to all the miners. The alternative to consolidating the mined blocks into one large UTXO would cost more to send because it would be a much larger transaction.

Just a guess.

Wow Nice Title

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BurtW

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Re: what's going on at that address?

August 19, 2014, 04:30:15 AM

#6

Yes, I am a legend in my own mind Grin

There are a few of us that have been here a very long time and have spent way too much time on this forum. However, even after all this time I still learn new things about Bitcoin on a regular basis. That is what I love most about Bitcoin.

Our family was terrorized by Homeland Security. Read all about it here: http://www.jmwagner.com/ and http://www.burtw.com/ Any donations to help us recover from the $300,000 in legal fees and forced donations to the Federal Asset Forfeiture slush fund are greatly appreciated!