Ethereum: Can a Bitcoin transaction have the same address for input and output?

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The strange case of the transfer of the same address at Ethereum

In recent years, Bitcoin has subjected significant changes in its transaction rules, especially with regard to input/output addresses. For those who are not familiar, this can be a complex topic. In this article we will deal with the specificities of the transfers of the same address in Ethereum and examine why they are possible.

What is an input/output address?

In Bitcoin, an address serves as an entry (for sending coins) and for the output (for receiving coins). If you send coins from one address to another, it is referred to as a transaction. Each transaction consists of two parts: input and output. The entry indicates the portfolio address of the sender, while the output specifies the address of the recipient’s portfolio.

The old rule in Bitcoin

In the past, Bitcoin transactions enabled the same address for input and output. This was carried out by defined the same input guess as the output address. However, this change of rule occurred in Bitcoin 3.1, in which a new type of transaction called “Script” instructions were introduced.

The rule of the same address changes

In response to security, scalability and user -friendly concerns, Ethereum developers introduced a number of transactions that surround the same input/output addresses. From version 4.0 (previously known as ETH 1.3), the equivalent transaction type of Bitcoin is referred to as “expenses”.

Can transmissions of the same address occur?

Yes, you read it properly. At Ethereum, it is technically possible to output a currency for your own entry address and then return the remaining coins to the same input law without changing the output address.

Here is an example:

  • Alice spends 10 BTC (Bitcoin) for her portfolio address.

  • It travels the coins under the same address as the wallet and made sure that it did not change the value or address of the down payment.

  • The transaction is successful and the recipient receives the deposited funds without changes to its input/output addresses.

Why is that possible?

The main reason for the permission of the transfer of the same address is the fact that Ethereum’s focus has led to simplification of the transactions in scalability. By using the type of transaction expenditure, Ethereum avoids the creation of new and complex scripts or additional data structures that are required for a more differentiated transmission logic.

On the other hand, Bitcoin script instructions in version 3.1 are designed in such a way that they deal with more advanced use cases and maintain efficiency and security. The change of the rule of the same address aimed to reduce complexity and to improve the usability for a wider audience.

Diploma

Thanks to the flexibility of Ethereum network with regard to transfers of the same address, users can optimize their transactions by reused existing coins between the input/output addresses. However, this contains some warnings: it requires careful management to avoid problems with to -pocket balance sheets or transaction validation.

Although we have listed a greater introduction and usability for complex transactions in Ethereum, the underlying logic remains based on the focus on scalability and simplicity.

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