UTXO Consolidation

The practice of combining many small unspent outputs into fewer, larger ones to reduce future fees and input bloat.

Type:

wallet

fee

definition

UTXO consolidation groups multiple small coins into bigger ones, which can lower fees for later payments (fewer inputs) and speed up signing.

caution

Consolidate during low-fee periods to save costs
Consolidation can link addresses and harm privacy; use coin control and labeling
Avoid consolidating tainted coins with clean ones if privacy is a concern

A fundamental blockchain data structure representing unspent value that can be used in future transactions.

Manual selection of specific UTXOs when creating a transaction.

A fee expressed per unit of transaction size (e.g., satoshis per vbyte) used to prioritize inclusion in blocks.

The ability to transact without revealing sensitive information about identity, balances, or counterparties.

All terms and definitions may update as the Cryptionary improves.