UTXO Consolidation
Combining many small unspent outputs into fewer larger ones to reduce future transaction size and fee overhead.
UTXO consolidation spends multiple small outputs back to the wallet as one or a few larger outputs. It can make future payments cheaper because those payments need fewer inputs.
Consolidation itself costs a fee and can harm privacy by linking addresses together. It is usually best done during low-fee periods with deliberate coin control and clear wallet labels.
Related terms
4 linkedExplore connected entries beyond the alphabetical index.
Unspent Transaction Output (UTXO)
→A discrete spendable output on a UTXO blockchain, similar to a digital coin that must be spent whole.
Coin Control
→Manual selection of specific UTXOs when creating a transaction.
Fee Rate
→A fee rate is the transaction fee per unit of size, such as satoshis per vbyte, used to prioritize block inclusion.
Privacy
→The ability to transact without revealing sensitive information about identity, balances, or counterparties.
All terms and definitions may update as the Cryptionary improves.
