Decide which utxos to spend in Ethereum transactions: Understanding compromises

When it comes to making transactions on the Ethereum network, the choice of unat -spent transaction outputs (UTXO) to spend is a critical decision that can have important implications for overall performance and blockchain safety. In this article, we will explore the different algorithms used by the consensual algorithm of Ethereum to decide which utxos prioritizes.

The oldest utxos approach

A common approach is to use an oldest oldest strategy, where older UTXOs are hierarchical by the most recent. This means that if an account recently spent utxos but that there are still others for expenses, the most recent expenses will be a priority first.

The least recently used approach (LRU)

Another approach is to use a least used strategy, where the most frequently used UTXOs are hierarchical by the oldest. This means that if an account recently spent utxos but that in other people available for expenses, the most frequently used will have priority.

The least frequently used approach (LFU)

A third approach is to use a least used strategy, where the most used UTXOs are priority compared to the older ones. This means that if an account recently spent utxos but that in other people available for expenses, the least frequently used will have priority first.

The approach to proof of the stake (pos)

Ethereum's consensus algorithm also uses an approach to put it to decide which utxos prioritizes. In this system, validators are chosen according to the quantity of Ethereum tokens which they hold in their wallets as guaranteed for their stake. The validator with the largest participation is chosen first, then the next most important challenges are priority.

The approach to work proof (POW)

On the other hand, POW uses a work proof approach to decide which UTXOS has priority. This implies resolving complex mathematical puzzles to validate transactions on the network. Validators who solve these puzzles first receive a reward in Ethereum tokens, and their priority is determined by their reputation and the difficulty of the puzzle.

Conclusion

The choice of the algorithm used to decide which utxos to spend depends on the specific use case and the requirements of the application. Although each approach has its own advantages and disadvantages, it is essential to understand how they work and choose the best approach for your needs. In doing so, you can make sure that your transactions are performed effectively, safely and in accordance with Ethereum rules.

Additional resources

For a more detailed explanation of these algorithms, please consult our previous article: [Link to the previous article]