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Issue #1128: A payment pool proposal pops up

Issue #1128: A payment pool proposal pops up

Dec 10, 2021
Marty's Ƀent

Issue #1128: A payment pool proposal pops up

Here's something you freaks should jump into this weekend when you get a chance; a payment pool proposal from Jeremy Rubin. A little known fact to many who purchase bitcoin is that when you hold your private keys and move bitcoin to a public address associated with that private key you don't technically control something called a bitcoin, you control a UTXO (unspent transaction output) that can be used as an input in a future transaction. That UTXO or UTXOs have a certain amount of sats in them. Another thing most don't quite grasp yet is that it would be impossible for every human on Earth to own a UTXO.

via Jeremy Rubin

Due to the way Bitcoin works, particularly the fact that UTXOs have data attached to them that takes up space on the blockchain, if we want to ensure that the network is sufficiently distributed there is a limit to the amount of UTXOs that can exist. And the total number of UTXOs will be far below the number of humans on the planet. This may seem like a fatal flaw of the protocol, but it is a limitation that many are aware of and have been trying to solve via creative means for years. One of those creative solutions that has been discussed is creating payment pools.

Payment pools would allow many individuals to have part owner ship of a single UTXO. Before the taproot activation none of the payment pool ideas were very viable. Now that we have taproot, the possibility of bringing a viable payment pool solution to market has increased significantly. The viability of payment pools now that taproot has been activated has driven Jeremy Rubin to propose an official payment pool design that seems pretty legit at first glance. I need to do more research and ask Jeremy some questions about his idea, but I am very happy to see this ball getting pushed forward.

We'll be keeping you freaks abreast of the progress of payment pools as more information comes in.

Final thought...

Texas hill country is pretty damn beautiful.

Enjoy your weekend, freaks.


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