MTozoni ⚡😺 on Nostr: Re: CoinJoin, you have one transaction that has lots of people contributing inputs ...
Re: CoinJoin, you have one transaction that has lots of people contributing inputs and outputs, every person in turn checks that their input is going to the right output, and signs their part of the transaction, then passes it on to the next one until everyone signed. It's no different from your wallet spending from lots of different inputs and just signing for all of them, except in this case you have each individual sign their part. I believe Taproot can optimize that even more by combining all the signatures together, though I'm not sure.
In the same way you can have multiple people coordinate to add their inputs and outputs to a transaction to onboard lots of people at the same time.
"50k ppl buy btc on exchange. They all want to withdraw, so 50k transactions are needed. Can you explain further on the 100 transactions or less."
Exchange creates 100 transactions, each transaction sending some amount to 500 people. Exchanges already do that, pooling transactions together. If you ever withdrew Bitcoin from an exchange and looked at your transaction, you'll see lots of money going to other addresses besides just your own.
"I just mean if overnight a major country just all switches to Bitcoin it's unrealistic to say it will handle well."
Currently probably not. 50,000 people is one thing. 350,000,000 is a whole other story. If that suddenly became necessary to do, for now the only/best solution may be custodial, where a "bank" already holds all the Bitcoin and has large lightning channels, and just does all the transactions for customers off chain on their own ledger.
In the same way you can have multiple people coordinate to add their inputs and outputs to a transaction to onboard lots of people at the same time.
"50k ppl buy btc on exchange. They all want to withdraw, so 50k transactions are needed. Can you explain further on the 100 transactions or less."
Exchange creates 100 transactions, each transaction sending some amount to 500 people. Exchanges already do that, pooling transactions together. If you ever withdrew Bitcoin from an exchange and looked at your transaction, you'll see lots of money going to other addresses besides just your own.
"I just mean if overnight a major country just all switches to Bitcoin it's unrealistic to say it will handle well."
Currently probably not. 50,000 people is one thing. 350,000,000 is a whole other story. If that suddenly became necessary to do, for now the only/best solution may be custodial, where a "bank" already holds all the Bitcoin and has large lightning channels, and just does all the transactions for customers off chain on their own ledger.