Traditional Limitation: One Transaction at a Time

Bitcoin tracks ownership through individual transaction outputs (UTXOs). If you want to spend 1 BTC and only have smaller UTXOs, they must be merged into a single transaction, an onchain process that:

  • Increases transaction size

  • Raise network fees

  • Delays confirmation

For high-volume applications and users, like merchants, payment processors, or applications, this creates serious friction.

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