Secrets of Coinbase Transactions: Understanding OP Return
When a user interacts with their cryptomen wallet on a platform such as Coinbase, he can initiate transactions to send funds to other users or receive coins from others. However, as regards receiving a large number of coins, some users might be surprised when two output addresses see their transaction details. One of these outputs is described as “op_return”, which has caused confusion among many cryptomena enthusiasts.
In this article, we will immerse ourselves into the world of returns of the OP and explain why Baník would decide to include op_return in the coinbase transaction.
What is the return OP?
The term “OP payback” comes from the open Blockchain Ethereum software. The OP return is basically a special type of transaction that allows you to create multiple output addresses with different balances known as “outputs”. These outputs can be used to send funds to various recipients without incuring unnecessary gas charges.
Why would Baník put op_return into the coinbase transaction?
Miners in the Ethereum network use complex algorithms to verify transactions and to ensure the integrity of the blockchain. When the user initiates a transaction, miners must create more output addresses with different balances. These output addresses are then sent to the network for verification.
In the case of Coinbase transaction, op_return is used to create multiple outputs that can be used to send funds in different ways. This is how it works:
1.
- Miner creates output addresses for op_return : Miner on Ethereum creates two separate output addresses using the OP (more about this) algorithm.
3
Miner includes op_return in transaction : Miner adds these two output addresses to the coinbase transaction, creating more outputs that can be used to send funds.
4.
Why use op_return?
There are several reasons why Baník would decide to include in his Op_return transaction:
* Reducing gas fees : using OP return can create more outputs with different balances, helping to reduce the total gas fee needed for the transaction.
* Increasing network efficiency : OP Return allows users to receive coins from multiple sources without having to verify each individual output address.
* Maximization of profit from miners : Managers who use OP returns can have an advantage over those who do not control more transactions and increase their chances to get more payment.
Example of Coinbase transaction
Let’s take a closer look at the example you have given: “I look at this coinbase transaction. I am confused why there are two outputs and why one of them is marked with op_return. ”
In this case, the Coinbase transaction could be initiated by a user who wants to receive funds from multiple sources (eg a friend’s wallet) without having to verify each individual output address.
The “op_return” label would indicate that the sender created two separate output addresses using the OP return algorithm. These outputs can be used to send coins to different recipients, which could be done by simply sending one or more transactions instead of creating additional output addresses.
Conclusion
Finally, the OP Returns play a decisive role in the Ethereum transaction process in terms of coinbase transactions. Using the OP return, miners can create more output addresses with different balances, reduce gas charges and increase network efficiency.
