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Suggestion for a universal bitcoin value scale

Martin Damgaard proposed an idea for a universal bitcoin value color scale in an attempt to solve the decimal problem of small bitcoin amounts identified by BIP176 Bits denomination proposal which he used as a template.

The issue with this according to Kharl-Johan Alm is that by the time people adopt this method, it will only give a false high value to the amount make it bigger than it really is, which is misleading.

Another problem is that different UX colours have different meanings and colours don’t work well with text. Also, colour blind users may find it difficult.

BIP176 is widely accepted anyway. It also makes it easier to read bitcoin amounts up to 8 decimal places than colours . Besides, the proposed method is cumbersome and most wallets may not adopt it because it will make their design look substandard.

Consolidation of 4 Million Utxos at Xapo

Following the last few months of low transaction fees, many have used the opportunity to consolidate their UTXOs . Xapo, a company that makes an online bitcoin wallet, recently published a report on their experience consolidating millions of UTXOs.

The idea behind UTXO consolidation is essentially this: when your average outgoing payment is larger than your average incoming payment (or when they’re the same, but you’re batching outgoing payments), you’ll often have to combine many UTXOs in order to fund an outgoing transaction, which increases the size of your transactions and hence the fees you pay. By consolidating UTXOs in advance, you can combine inputs ahead of time, giving you more control over when most of those costs are incurred. If you can do it when fees are low, that lets you reduce those costs pretty substantially.

Read the article here

Transaction Coins

An idea was brought recently about creating a coin that benefits from the digital scarcity of Bitcoin transactions. The coin works by being created from transactions whose hash is close to the non zero portion of their block hash. A single coin is created for up to N closest transactions to the block hash.

One of the drawbacks of this idea is that it could incentivize transactions for other reasons than actually transacting, thus creating an “altcoin” market on the Bitcoin blockchain in which people transact and pay fees solely for the chance of getting this coin. This can cause the Blockchain to become seriously congested and wouldn’t allow legitimate transactions to pass.