Source of energy, it sounds quite strange. But there are definitely some reason for highlighting coinbase transaction. I will give an explanation.
In the last article, I introduced an important invention of Bitcoin, UTXO. Maybe you have a visual impression of it. Meanwhile, you may have a new doubt, since the input and output are equal (plus the handling fee), where do the “flowing” UTXO in the Ulord blockchain originally come from?
General UT transaction
Before answering this question, we have to understand a new concept — transaction. The concept of transaction may be slightly different from your previous understanding. Transaction we talk today highlights the transfer process.
In traditional banking system, if Cyber wants to transfer 100 dollars to Letaotao, he needs to give the system the basic information such as account, account password, and amount. The system takes the corresponding operation according to the information provided by Cyber. That is to say, a transaction message must contain the input UTXO and the output UTXO. Cyber sends the transaction information to Ulord system through the terminal software (UT wallet). If the transaction information is confirmed by the system, the input UTXO is “destroyed”. While the output UTXO officially get effective, which is the so-called new UTXO. The destruction mentioned here only means that this UTXO owner can’t use it again. It doesn’t mean to delete the data in this UTXO. Instead, the data will be permanently stored in Ulord system. When a new UTXO is generated, it means the transaction has been successful and the new UTXO can be used for the new transfer.
Coinbase transaction
Now, you may have a simple understanding about the transaction on Ulord public blockchain. Under normal circumstances, to generate a new UTXO, an old UTXO must be destroyed. But, for the bitcoin public blockchain, there is indeed a kind of transaction, which has no input UTXO, only the output UTXO! This kind of transaction is coinbase transaction. In other words, new UT generated by Ulord system comes from this kind of transaction. The new UTXO generated by the coinbase transaction is essentially different from the UTXO generated by the general transaction. The former will increase the number of UT corresponding to UTXO in the system. While the latter does not. Therefore, new UT generated by coinbase transaction, just like the newly issued legal currency, will affect the total circulation of UT.
Reading here, maybe you are thinking that whether I can send UT to myself through the coinbase transaction? Definitely yes! Whereas there are some conditions. In Ulord system, every 2.5 minutes or so, a lucky one can send a transaction like this to himself! But only one! And he has to take the responsibility for billing Ulord system and prove that he has the only qualification to initiate a coinbase transaction in this period.
Well, where there are interests, there are competitions. This is also true in Ulord system. Many friends want to initiate the coinbase transaction to get 112UTs. Since the launch of Ulord public blockchain on May 22, 2018, the competition has been quite fierce. The blockchain industry’s measure of competition is the network hashrate. In just a few dozen days, Ulord’s network hashrate was up to 280M, which is quite rare for a new project. The emergence of this fierce competition lies in the charm of coinbase transaction. Therefore, I say it as the source of energy. It stimulates miners to actively participate in Ulord system and guarantee the security of Ulord system data.
Conclusion
Now we understand the source of UT in Ulord system and have a general understanding of the UT flow in the system. How does the system know who owns a UTXO, or how the system determines the legality of this transaction? I will tell you in the next article-You are the master of your UTXO.
