Understand the identification of Ethereum’s public address in new transactions

As a beginner in understanding Blockchain technology, you probably know the concept of UTXOS (transaction outputs not spent) and how they are used to represent transactions on the Ethereum network. However, when it comes to creating new transactions, an aspect that can be confusing is the way Ethereum identifies what UTXOS belong to a public address.

In this article, we will immerse ourselves in the details of how the portfolio of Ethereum and the Blockchain will identify the public addresses of UTXOS in new transactions.

What are the public addresses?

A public address is a single character chain allocated to an individual or an organization on the Ethereum network. It serves as an identifier for the release of a transaction and allows a transparent interaction between the parties on the network. The best known example of a public address is the prefix “0x” followed by a hexadecimal sequence (for example, 0x1234567890abcdef).

utxos in new transactions

When creating a new transaction, the Ethereum portfolio generates a table of UTXOS from zero. These UTXOs represent the assets or the values ​​that will be spent in the context of the transaction.

In the absence of specific information on public addresses for each UTXO, how Ethereum identifies which one belongs to who has the public address? This is where things become interesting.

The role of the big book

Ethereum’s blockchain stores all transactions in a hierarchical database (and always growing) called “big book”. The big book contains each transaction that has ever occurred on the network. In this large book, each UTXO has a unique identifier associated with it – known as “hash”.

When creating a new transaction, the Ethereum portfolio uses UTXO’s hash to generate a public address for the release. This is done using a process called “hash generation”, where the portfolio combines the public key (a cryptographic secret) and the hatching of the UTXO with additional data.

The locking script

The locking script is another crucial component to create a new transaction. It is a piece of complex code that specifies how funds will be spent in the transaction. The locking script generally involves a series of operations, such as the extraction of a specific number of parts of an account or transfer them to a new portfolio.

In Ethereum, the locking script is used to identify which public address belongs to which UTXO. By combining UTXO’s hash with the locking script, the Ethereum portfolio can create a unique “address cartography” relationship between each UTXO and its corresponding public address.

In summary

To summarize, when creating a new transaction on the Ethereum network, the portfolio generates a series of UTXOS from zero. To identify what UTXO belongs to the public address belongs, the Ethereum portfolio uses a combination of hash generation, identification of locking script and addressing of cartography relationships built within the big book. By taking advantage of these mechanisms, Ethereum guarantees that each UTXO has a single public address associated with it, allowing transparent interactions between the parties on the network.

This article provides a complete understanding of how Ethereum’s portfolio identifies public addresses of UTXOS in new transactions. While you continue to explore blockchain technology and develop your skills as a developer or passionate, this knowledge will undoubtedly be precious to sail in the complex world of cryptocurrency and smart contracts.