Partially Segregated Transactions: A Look at Ethereum Segwit Limitations
Ethereum, like other blockchain networks, has been criticized for not supporting Partially Segregated Transactions (PST). The protocol, launched in 2017 at the intersection of Ethereum Classic and Ethereum, struggled to process 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 individual UTXOs (unspent transaction outputs) to be associated with the same output. This is different from segregated addresses, which are used to specify a range of addresses where funds are split across different blockchains or wallets.
In the current implementation of Ethereum, 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 eligible for spending.
Bitcoin Core V0.15 Wallets: The Bitcoin Cash Side of the Story
In the case of wallets that support Bitcoin Cash (BCH), some have found ways to get around the Ethereum separation 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 their Bitcoin Cash wallet was able to accept Segwit UTXOs from another wallet.
*It is important to note, however, that these solutions are not without limitations. The user will still need to ensure that the non-Segwit UTXOs are issued or included in a valid transaction.
Partially Separated Transactions: A Complex Problem
While some users have found ways to circumvent Ethereum’s segregation limit using BTC wallets, partially segregated transactions (PST) are not currently supported on Ethereum. With PST, a single UTXO is split between two different addresses. PSTs are possible in Bitcoin Cash because the network uses separate addresses.
Ethereum’s lack of support for partially segregated transactions is primarily due to the complexity and technical challenges involved in implementing this feature. The current implementation requires significant changes to the core protocol, including:
- Rework the UTXO storage and validation logic
- Introduce new address types adapted to PST
- Updated wallet software to handle additional logic
Conclusion
While partially segregated transactions are not currently supported on Ethereum, some users have found ways to circumvent this limitation using Bitcoin Cash wallets. However, this requires careful handling of both Segwit and non-Segwit UTXOs.
As the ecosystem evolves, Ethereum’s support for partially segmented transactions is likely to improve. Until then, users with BCH wallets may need to consider alternative solutions or wait for a future update to support PST.
References:
- “Segregated Transactions” (Ethereum White Paper)
- “Bitcoin Cash Wallet – Segregated Addresses” (Bitcoin Cash Wiki)
- “Ethereum Segwit Limitations” (Ethereum Stack Exchange)