Understanding Ethereum’s Identifying Public Addresses in New Transactions
As a beginner in understanding blockchain technology, you’re probably familiar with the concept of UTXOs (Unspent Transaction Outputs) and how they are used to represent transactions on the Ethereum network. However, when it comes to creating new transactions, one aspect that can be puzzling is how Ethereum identifies which UTXOs belong to a public address.
In this article, we’ll dive into the details of how the Ethereum wallet and blockchain identify public addresses for UTXOs in new transactions.
What are Public Addresses?
A public address is a unique string of characters assigned to a person or organization on the Ethereum network. It serves as an identifier for the output of a transaction and allows for seamless interaction between parties on the network. The most well-known example of a public address is the prefix “0x” followed by a hexadecimal sequence (e.g. 0x1234567890abcdef).
UTXOs in new transactions
When creating a new transaction, the Ethereum wallet generates an array of UTXOs from scratch. These UTXOs represent the assets or values that will be spent within the transaction.
In the absence of specific public address information for each UTXO, how does Ethereum identify which one belongs to which public address? This is where things get interesting.
The role of the ledger
The Ethereum blockchain stores all transactions in a hierarchical (and ever-growing) database called the “Ledger.” The Ledger contains every transaction that has ever occurred on the network. Within this ledger, each UTXO has a unique identifier associated with it, known as its “hash.”
When creating a new transaction, the Ethereum wallet uses the UTXO’s hash to generate a public address for the output. This is done using a process called “hashing,” where the wallet combines the public key (a cryptographic secret) and the UTXO’s hash with some additional data.
The Lock Script
The lock script is another crucial component of creating a new transaction. It is a complex piece of code that specifies how funds will be spent within the transaction. The lock script typically involves a series of operations, such as withdrawing a specific amount of coins from an account or transferring them to a new wallet.
In Ethereum, the lock script is used to identify which public address belongs to which UTXO. By combining the UTXO’s hash with the lock script, the Ethereum wallet can create a unique “address mapping” relationship between each UTXO and its corresponding public address.
In short
To summarize, when creating a new transaction on the Ethereum network, the wallet generates a series of UTXOs from scratch. To identify which UTXO belongs to which public address, the Ethereum wallet uses a combination of hash generation, lock script identification, and address mapping relationships created within the Ledger. By leveraging these mechanisms, Ethereum ensures that each UTXO has a unique public address associated with it, allowing for seamless interactions between parties on the network.
This article provides a comprehensive understanding of how the Ethereum wallet identifies public addresses for UTXOs in new transactions. As you continue to explore blockchain technology and develop your skills as a developer or enthusiast, this knowledge will undoubtedly prove valuable in navigating the intricate world of cryptocurrencies and smart contracts.