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Partially Split Transactions: A Look at the Limitations of Ethereum’s Segwit
Ethereum, like other blockchain networks, has faced criticism for its lack of support for Partially Split Transactions (PST). The protocol, introduced in 2017 as a result of the Ethereum Classic-Ethereum hard fork, struggles to accommodate more than one UTXO per address. However, some users have found ways to get around this limitation, albeit with limitations.
Understanding Split Transactions
Split transactions allow separate UTXOs (unspent transaction outputs) to be associated with the same output. This is in contrast to split addresses, which are used to define a set of addresses where funds will be split across different blockchains or wallets.
In the current implementation of Ethereum, UTXOs from Segwit and non-Segwit addresses can coexist in the same wallet, but they cannot be mixed together. If an address has both Segwit and non-Segwit UTXOs, only one of them is considered valid for spending.
Bitcoin Core V0.15 Wallets: The Bitcoin Cash Side of the Story
When it comes to wallets supporting Bitcoin Cash (BCH), some have found ways to get around Ethereum’s segregation limit. A wallet with Segwit coins can be used with BCH, and the user can segregate their Segwit and non-Segwit UTXOs.
Here are a few examples:
- In 2017, a user experimented with using a Bitcoin Cash wallet on an Ethereum node to receive Segwit-based transactions from an Ethereum address.
- Another user reported finding that his Bitcoin Cash wallet could only accept Segwit-only UTXOs from another wallet.
- It’s important to note, however, that these solutions are not without limitations. The user will still need to ensure that the non-Segwit UTXO is spent or included in a valid transaction.
Partially Split Transactions: A Complex Problem
Although some users have found ways to circumvent Ethereum’s segregation limit with BTC wallets, Partially Split Transactions (PST) are not currently supported on Ethereum. PSTs involve splitting a single UTXO between two different addresses. In Bitcoin Cash, PSTs are possible due to the use of separate addresses on the network.
The lack of support for partially split transactions in Ethereum is mainly due to the complexity and technical challenges involved in achieving this feature. The current implementation requires significant changes to the core protocol, including:
- Revisiting the logic for storing and validating UTXOs
- Introducing new address types to accommodate PST
- Updating the wallet software to handle the additional logic
Conclusion
While partially segmented transactions are not currently supported on Ethereum, some users have found ways to work around this limitation with Bitcoin Cash wallets. However, this requires careful handling of Segwit and non-Segwit UTXOs.
As the ecosystem continues to evolve, it is likely that we will see improvements in Ethereum’s support for partially segmented transactions. Until then, users with BCH wallets may need to consider alternative solutions or wait for a future upgrade to support PST.
References:
- “Segregated Transactions” (Ethereum Whitepaper)
- “Bitcoin Cash Wallet – Segregated Addresses” (Bitcoin Cash Wiki)
- “Limitations of Ethereum Segwit” (Ethereum Stack Exchange)