Bitcoin dust refers to the small amount of bitcoin leftover or unspent in a transaction that is lower in value than the minimum limit of a valid transaction.
KEY TAKEAWAYS Bitcoin dust is a series of trace amounts of bitcoins that individually are less valuable than the computing power or fee that is required to process them; as a result, the transaction is impossible to process.
The cost of the fee to process a bitcoin transaction fluctuates based on the volume of transactions on the network.
While bitcoin dust can slow down network transactions, attempting to clean up bitcoin dust can create a privacy problem, especially for small users.
If a user has one bitcoin stored in one UTXO, it will cost less to transact it than one bitcoin spread across 10 UTXOs of 0.1 bitcoin or 100 UTXOs of 0.01 bitcoin.
Such minuscule transactions, if initiated, are dropped, and need to be carried out again between the sender and receiver.
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Bitcoin dust refers to the small amount of bitcoin leftover or unspent in a transaction that is lower in value than the minimum limit of a valid transaction.
KEY TAKEAWAYS Bitcoin dust is a series of trace amounts of bitcoins that individually are less valuable than the computing power or fee that is required to process them; as a result, the transaction is impossible to process.
The cost of the fee to process a bitcoin transaction fluctuates based on the volume of transactions on the network.
While bitcoin dust can slow down network transactions, attempting to clean up bitcoin dust can create a privacy problem, especially for small users.
If a user has one bitcoin stored in one UTXO, it will cost less to transact it than one bitcoin spread across 10 UTXOs of 0.1 bitcoin or 100 UTXOs of 0.01 bitcoin.
Such minuscule transactions, if initiated, are dropped, and need to be carried out again between the sender and receiver.