Partially Segregated Transactions: A Look at Ethereum’s Segwit Limitations
Ethereum, like other blockchain networks, has faced criticism for its lack of support for partially segregated transactions (PST). The protocol, introduced in 2017 as a result of the hard fork between Ethereum Classic and Ethereum, has struggled to support more than one UTXO per address. However, some users have found ways to get around this limitation, albeit with limitations.
Understanding Segregated Transactions
Segregated transactions allow separate UTXOs (unspent transaction outputs) to be associated with the same output. This is in contrast to segregated 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 in 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 Wallets V0.15: The Bitcoin Cash Side of the Story
When it comes to wallets that support Bitcoin Cash (BCH), some have found ways to get around Ethereum’s segregation limit. A wallet with Segwit coins can be used with BCH, and the user can separate 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 that he found that his Bitcoin Cash wallet was able to accept Segwit-only UTXOs from another wallet.
- However, it is essential to note that these solutions are not without limitations. The user would still need to ensure that the non-Segwit UTXO is spent or included in a valid transaction.
Partially segregated transactions: a complex problem
While some users have found ways to get around Ethereum’s segregation limit with BTC wallets, partially segregated transactions (PSTs) on Ethereum are currently not supported. PSTs involve splitting a single UTXO between two different addresses. In Bitcoin Cash, PSTs are possible due to the use of network segregated addresses.
The lack of support for partially segregated 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 UTXO storage and validation logic
- Introducing new address types to accommodate PSTs
- Updating wallet software to handle the additional logic
Conclusion
While partially segregated transactions are not currently supported on Ethereum, some users have found ways to get around this limitation with Bitcoin Cash wallets. However, this requires careful handling of Segwit and non-Segwit UTXOs.
As the ecosystem continues to evolve, we are likely to see improvements in support for partially segmented transactions on Ethereum. Until then, users with BCH wallets may have to consider workarounds or wait for a future update to support PST.
References:
- “Segregated Transactions” (Ethereum whitepaper)
- “Bitcoin Cash Wallet: Segregated Addresses” (Bitcoin Cash wiki)
- “Ethereum Segwit Limitations” (Ethereum Stack Exchange)