Thank you for the feedback!
I tend to think more in terms of organization. To me, a UTXO should represent a single Satoshi and not be used to represent other things like assets. From an organizational and logical standpoint, it would be better to introduce a new, more robust option designed specifically for that purpose: creating assets.
Disk space usage wasn’t really my main concern here. My focus was more on maintaining clarity and keeping things straightforward for the user.
Another issue with using a UTXO-based approach is the handling of fees. There could be two distinct fees, each with its own demand. This would prevent regular users from being frustrated by a surge fees in useless asset creation.
The problem with sidechains and the Lightning Network is that some users might view such assets as “unofficial,” since they are essentially workarounds embedded within UTXO scripts. With a dedicated UAXO, things would be clearer and more transparent.
Cheers!
Topic: Requesting feedback on UAXO. (Read 86 times)
Here's my honest feedback.
For average users, their actual concern isn't UTXO growth but rather how much space on blocks used to include Ordinals (and similar protocol) transaction which affect fee rate.
If i understand your idea correctly, miners still need to choose to include either UTXO-based TX or UAXO-based TX on their block. It doesn't seems to solve problem i mentioned above.
IMO Bitcoin sidechain and LN are better option to manage assets, NFT or token.
An idea that would bring peace of mind to Bitcoin users, shielding them from the disruptive flood of meaningless assets being created within UTXOs, which I believe is a serious issue, as it unnecessarily inflates the cost per virtual byte.
For average users, their actual concern isn't UTXO growth but rather how much space on blocks used to include Ordinals (and similar protocol) transaction which affect fee rate.
The Core Idea:
Currently, Bitcoin uses the UTXO (Unspent Transaction Output) model to manage transactions and ownership of BTC. With Taproot enabling more complex scripting capabilities, users have started embedding assets and additional data into UTXOs, which can clutter the blockchain and wasn’t the original intent of UTXOs.
Enter UAXO: A parallel system to UTXO, specifically designed for assets. UAXOs would handle asset transactions without “spending” them in the traditional sense. This allows for more complex functionalities, akin to native smart contracts, without overloading the UTXO set.
PS. The miner would have the option to mine UAXO. They could choose to mine blocks containing only UTXOs. Eventually, a UAXO transaction in the mempool would be picked up by a future miner that supports UAXO. This would serve as an effective way to introduce UAXO through a soft fork.
Currently, Bitcoin uses the UTXO (Unspent Transaction Output) model to manage transactions and ownership of BTC. With Taproot enabling more complex scripting capabilities, users have started embedding assets and additional data into UTXOs, which can clutter the blockchain and wasn’t the original intent of UTXOs.
Enter UAXO: A parallel system to UTXO, specifically designed for assets. UAXOs would handle asset transactions without “spending” them in the traditional sense. This allows for more complex functionalities, akin to native smart contracts, without overloading the UTXO set.
PS. The miner would have the option to mine UAXO. They could choose to mine blocks containing only UTXOs. Eventually, a UAXO transaction in the mempool would be picked up by a future miner that supports UAXO. This would serve as an effective way to introduce UAXO through a soft fork.
If i understand your idea correctly, miners still need to choose to include either UTXO-based TX or UAXO-based TX on their block. It doesn't seems to solve problem i mentioned above.
I’d love to hear your thoughts and engage in a constructive discussion about this idea.
IMO Bitcoin sidechain and LN are better option to manage assets, NFT or token.
This topic might have come up here before. I took a quick look but couldn’t find anything.
Introducing UAXO: Enhancing Bitcoin with Native Assets and Sustainable Incentives
Hello Bitcoin Talk community,
I’ve been contemplating an idea to improve the Bitcoin network by introducing a concept called UAXO (Unspent Asset Output). My goal is to enhance Bitcoin’s functionality while avoiding unnecessary complexity or chaos. With the inevitable evolution brought about by Taproot, it’s crucial that we find structured ways to integrate new features without disrupting the network’s integrity.
An idea that would bring peace of mind to Bitcoin users, shielding them from the disruptive flood of meaningless assets being created within UTXOs, which I believe is a serious issue, as it unnecessarily inflates the cost per virtual byte.
The Core Idea:
Currently, Bitcoin uses the UTXO (Unspent Transaction Output) model to manage transactions and ownership of BTC. With Taproot enabling more complex scripting capabilities, users have started embedding assets and additional data into UTXOs, which can clutter the blockchain and wasn’t the original intent of UTXOs.
Enter UAXO: A parallel system to UTXO, specifically designed for assets. UAXOs would handle asset transactions without “spending” them in the traditional sense. This allows for more complex functionalities, akin to native smart contracts, without overloading the UTXO set.
PS. The miner would have the option to mine UAXO. They could choose to mine blocks containing only UTXOs. Eventually, a UAXO transaction in the mempool would be picked up by a future miner that supports UAXO. This would serve as an effective way to introduce UAXO through a soft fork.
Benefits and Incentives:
1. Bringing Order to Innovation:
• By introducing UAXOs, we provide a dedicated space for asset-related transactions, preventing the UTXO set from becoming disorganized.
• This separation maintains Bitcoin’s simplicity as digital money while allowing advanced features to develop in an organized manner.
2. Enhanced Miner Incentives:
• Dual Fees: Miners would earn fees from both UTXO and UAXO transactions, effectively increasing their revenue.
• Long-term Sustainability: As block rewards decrease over time, additional fees from UAXOs could provide a more sustainable income for miners.
• Increased Hashrate: Higher potential earnings could attract more miners, boosting the network’s hashrate and overall security.
3. Spam Prevention:
• Higher Minting Fees: Creating (minting) a new UAXO would have a higher fee to discourage spam and ensure that only valuable assets are introduced.
• Controlled Transactions: Subsequent asset transactions could have regulated fees, perhaps slightly higher than standard BTC transactions, to maintain network efficiency.
4. Inevitable Evolution with Taproot:
• Taproot has unlocked new possibilities, and users are already leveraging it to create various assets and complex transactions.
• Embracing UAXOs is a proactive step to manage this evolution, ensuring that the network grows in a controlled and efficient manner.
Potential Applications:
• Smart Contracts and DAOs:
• UAXOs could enable native smart contracts, allowing for decentralized funds that distribute Satoshis to predefined wallets over time.
• Examples include funding for developers, support for educational institutions, or any programmable asset distribution without external interference.
• Native Asset Swaps:
• Facilitating direct swaps between BTC and other assets within the Bitcoin network, without relying on external protocols or layer-2 solutions.
• Enhanced Asset Management:
• UAXOs could represent NFTs, stablecoins, or other tokenized assets, all managed natively on the Bitcoin blockchain.
Technical and Security Considerations
• Isolated Risk: UAXOs would operate separately from UTXOs, ensuring that any potential bugs or issues with UAXO contracts would not impact the Bitcoin network. If a UAXO asset encounters an error, it would simply be discarded, similar to an expired state, without affecting the Bitcoin ledger.
• Compatibility with Lightning Network and Sidechains: As UAXOs are conceptually “siblings” to UTXOs, they could be easily integrated with Lightning Network and other Bitcoin solutions. This would allow micropayments and swaps involving UAXOs and UTXOs natively, without bridges or external dependencies.
Pay-to-Asset and Native Swaps: Unlocking New Potential
Pay-to-Asset transactions extend Bitcoin’s model of paying to public keys (e.g., Pay-to-PubKey) by directing payments to a entity: a UAXO.
This would enable native swaps within the Bitcoin ecosystem—imagine exchanging Bitcoin directly for tokenized assets without intermediaries. UAXOs could even spawn child assets, creating new forms of financial instruments that evolve and interact natively within the blockchain.
Conclusion:
Introducing UAXOs could bring significant benefits to the Bitcoin ecosystem:
• For Users: Access to advanced features like smart contracts and asset management without compromising the simplicity of Bitcoin transactions.
• For Miners: Increased revenue through additional fees, promoting network security through a higher hashrate.
• For the Network: A structured evolution that embraces new functionalities while maintaining order and efficiency.
I believe that UAXOs are a natural progression for Bitcoin, aligning with the inevitable advancements brought by Taproot. This approach can help us avoid the pitfalls of disorganized growth and ensure that Bitcoin remains robust, secure, and innovative.
I’d love to hear your thoughts and engage in a constructive discussion about this idea. Together, we can work towards a Bitcoin network that balances simplicity with advanced capabilities, all while keeping the community’s best interests at heart.
Best regards
Introducing UAXO: Enhancing Bitcoin with Native Assets and Sustainable Incentives
Hello Bitcoin Talk community,
I’ve been contemplating an idea to improve the Bitcoin network by introducing a concept called UAXO (Unspent Asset Output). My goal is to enhance Bitcoin’s functionality while avoiding unnecessary complexity or chaos. With the inevitable evolution brought about by Taproot, it’s crucial that we find structured ways to integrate new features without disrupting the network’s integrity.
An idea that would bring peace of mind to Bitcoin users, shielding them from the disruptive flood of meaningless assets being created within UTXOs, which I believe is a serious issue, as it unnecessarily inflates the cost per virtual byte.
The Core Idea:
Currently, Bitcoin uses the UTXO (Unspent Transaction Output) model to manage transactions and ownership of BTC. With Taproot enabling more complex scripting capabilities, users have started embedding assets and additional data into UTXOs, which can clutter the blockchain and wasn’t the original intent of UTXOs.
Enter UAXO: A parallel system to UTXO, specifically designed for assets. UAXOs would handle asset transactions without “spending” them in the traditional sense. This allows for more complex functionalities, akin to native smart contracts, without overloading the UTXO set.
PS. The miner would have the option to mine UAXO. They could choose to mine blocks containing only UTXOs. Eventually, a UAXO transaction in the mempool would be picked up by a future miner that supports UAXO. This would serve as an effective way to introduce UAXO through a soft fork.
Benefits and Incentives:
1. Bringing Order to Innovation:
• By introducing UAXOs, we provide a dedicated space for asset-related transactions, preventing the UTXO set from becoming disorganized.
• This separation maintains Bitcoin’s simplicity as digital money while allowing advanced features to develop in an organized manner.
2. Enhanced Miner Incentives:
• Dual Fees: Miners would earn fees from both UTXO and UAXO transactions, effectively increasing their revenue.
• Long-term Sustainability: As block rewards decrease over time, additional fees from UAXOs could provide a more sustainable income for miners.
• Increased Hashrate: Higher potential earnings could attract more miners, boosting the network’s hashrate and overall security.
3. Spam Prevention:
• Higher Minting Fees: Creating (minting) a new UAXO would have a higher fee to discourage spam and ensure that only valuable assets are introduced.
• Controlled Transactions: Subsequent asset transactions could have regulated fees, perhaps slightly higher than standard BTC transactions, to maintain network efficiency.
4. Inevitable Evolution with Taproot:
• Taproot has unlocked new possibilities, and users are already leveraging it to create various assets and complex transactions.
• Embracing UAXOs is a proactive step to manage this evolution, ensuring that the network grows in a controlled and efficient manner.
Potential Applications:
• Smart Contracts and DAOs:
• UAXOs could enable native smart contracts, allowing for decentralized funds that distribute Satoshis to predefined wallets over time.
• Examples include funding for developers, support for educational institutions, or any programmable asset distribution without external interference.
• Native Asset Swaps:
• Facilitating direct swaps between BTC and other assets within the Bitcoin network, without relying on external protocols or layer-2 solutions.
• Enhanced Asset Management:
• UAXOs could represent NFTs, stablecoins, or other tokenized assets, all managed natively on the Bitcoin blockchain.
Technical and Security Considerations
• Isolated Risk: UAXOs would operate separately from UTXOs, ensuring that any potential bugs or issues with UAXO contracts would not impact the Bitcoin network. If a UAXO asset encounters an error, it would simply be discarded, similar to an expired state, without affecting the Bitcoin ledger.
• Compatibility with Lightning Network and Sidechains: As UAXOs are conceptually “siblings” to UTXOs, they could be easily integrated with Lightning Network and other Bitcoin solutions. This would allow micropayments and swaps involving UAXOs and UTXOs natively, without bridges or external dependencies.
Pay-to-Asset and Native Swaps: Unlocking New Potential
Pay-to-Asset transactions extend Bitcoin’s model of paying to public keys (e.g., Pay-to-PubKey) by directing payments to a entity: a UAXO.
This would enable native swaps within the Bitcoin ecosystem—imagine exchanging Bitcoin directly for tokenized assets without intermediaries. UAXOs could even spawn child assets, creating new forms of financial instruments that evolve and interact natively within the blockchain.
Conclusion:
Introducing UAXOs could bring significant benefits to the Bitcoin ecosystem:
• For Users: Access to advanced features like smart contracts and asset management without compromising the simplicity of Bitcoin transactions.
• For Miners: Increased revenue through additional fees, promoting network security through a higher hashrate.
• For the Network: A structured evolution that embraces new functionalities while maintaining order and efficiency.
I believe that UAXOs are a natural progression for Bitcoin, aligning with the inevitable advancements brought by Taproot. This approach can help us avoid the pitfalls of disorganized growth and ensure that Bitcoin remains robust, secure, and innovative.
I’d love to hear your thoughts and engage in a constructive discussion about this idea. Together, we can work towards a Bitcoin network that balances simplicity with advanced capabilities, all while keeping the community’s best interests at heart.
Best regards
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