How Bitcoin's UTXO Model Works

Bitcoin uses the Unspent Transaction Output (UTXO) model. When you send a transaction, you can only spend funds from previously received, unspent transactions (UTXOs). If you need to send an amount smaller than a single UTXO, you include your own address in the transaction to receive the "change" back. This mechanism prevents double-spending, though most wallets handle this process automatically behind the scenes.

Our Wallet's Privacy and Security

Unlike exchanges that may mix customer funds, our wallets operate like true hardware wallets, prioritizing maximum privacy and security. As a result, new users may notice limitations due to the UTXO model.

For example, if you have 1 BTC in a single UTXO and want to send 0.1 BTC, the entire 1 BTC is used as the input. The transaction specifies 0.1 BTC for the recipient and 0.9 BTC (minus network fees) as change sent back to your address. These funds remain locked until the transaction is confirmed.

Handling Multiple Payouts

To enable multiple simultaneous payouts, you can either:

Make multiple separate BTC deposits to create additional UTXOs, or
Use our Dconsolidation Tool to split a large UTXO into smaller ones, allowing for more parallel transactions.

How to Deconsolidate BTC or LTC

Deconsolidation splits a large Unspent Transaction Output (UTXO) into smaller ones to enable multiple simultaneous payouts. Follow these steps to deconsolidate your BTC or LTC:

Filter Unspent Transactions
- Navigate to the Transactions List.
- Set the first filter to "Unspent" (only unspent transactions can be deconsolidated).
- Set the second filter to "Include Internal".
- Select BTC (or LTC) in the currency filter.
- Click here to open exact link with this filter.
Locate the Transaction
- Identify the large unspent transaction you want to deconsolidate.
- Click to open the Transaction Detail View.
- Locate the Deconsolidate button on the right side.
Choose the Number of Parts
- Decide how many smaller UTXOs to create. Consider:
  - The size of the original transaction.
  - Your average payout size.
- Avoid splitting into too many parts (e.g., 100), as this may increase network fees due to requiring multiple inputs for future payouts.
Review and Execute
- Verify the number of parts and estimated network fees.
- Click Deconsolidate to proceed.
- Upon success, you’ll be redirected to the Deconsolidation Payout View.
Optional: Randomize for Privacy
- Use the "Randomize" option to obscure deconsolidation patterns. This feature randomizes addresses and amounts to minimize traceability by blockchain analysis tools, preferred by some users for enhanced privacy.