Partially Split Transactions: A Look at the Limitations of Ethereum’s Segwit
Ethereum, like other blockchain networks, has been criticized for its lack of support for partially split transactions (PSTs). The protocol, introduced in 2017 following the hard fork between Ethereum Classic and Ethereum, has struggled to support more than a single UTXO per address. However, some users have found ways to work 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 specify a set of addresses where funds will be split between different blockchains or wallets.
In Ethereum’s current implementation, UTXOs from Segwit addresses and non-Segwit addresses can coexist on the same wallet, but they cannot be mixed. 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 that support Bitcoin Cash (BCH), some have found ways to bypass 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 some 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 their Bitcoin Cash wallet could only accept Segwit UTXOs from another wallet.
- However, it is important to note 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 Issue
While some users have found ways to bypass Ethereum’s segregation limit with BTC wallets, partially split transactions (PSTs) on Ethereum are not currently supported. PSTs involve splitting a single UTXO between two different addresses. On Bitcoin Cash, PSTs are possible through the use of network-segregated addresses.
The lack of support for partially split transactions on Ethereum is primarily due to the complexity and technical challenges involved in achieving this feature. The current implementation requires significant changes to the underlying protocol, including:
- Overhauling the UTXO storage and validation logic
- Introducing new address types to support PSTs
- Updating the wallet software to handle the additional logic
Conclusion
While partially split 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 both Segwit and non-Segwit UTXOs.
As the ecosystem continues to evolve, it is likely that we will see improvements in support for partially split transactions on Ethereum. Until then, BCH wallet users may need to consider alternative solutions or wait for a future upgrade to support PSTs.
References:
- “Segregated Transactions” (Ethereum Whitepaper)
- “Bitcoin Cash Wallet – Segregated Addresses” (Bitcoin Cash Wiki)
- “Ethereum Segwit Limits” (Ethereum Stack Exchange)