Ethereum: Why are there two transaction outputs when sending to an address?

The Double Transaction Output Mystery: Decoding Ethereum’s Complexity

As a blockchain enthusiast, you’re probably familiar with the concept of Ethereum’s transaction output format. But have you ever wondered why there are two separate transaction outputs when coins are sent to the same address? In this article, we’ll dive into the inner workings of Ethereum’s transaction processing and explore what happens behind the scenes.

The Basics: Transaction Outputs

On a blockchain network like Ethereum, each transaction consists of a sender, a recipient, an amount, and other metadata. The unique identifier for each transaction output is called a “hash” and serves as a reference to the original transaction. In most cases, you’ll only see one hash associated with a single transaction output.

The Double Transaction Output Phenomenon

When coins are sent to an Ethereum address, both the sender and the recipient receive two separate transactions: one for the payment itself (the “input” transaction) and another for the transaction output itself (the “output” transaction). This may seem counterintuitive at first, but it is a result of Ethereum’s design.

To understand why this happens, let’s examine how Ethereum processes multiple transactions in a single block. When a new block is created, it contains a list of incoming transactions that are verified by the network and added to the blockchain. Each transaction has two inputs (from different wallets) and one output (the payment). By default, these outputs are bundled into a single transaction.

The Transaction Output Format

In Ethereum’s transaction format, each input is associated with a unique hash, and the recipient receives both the payment amount and the corresponding transaction hash. The transaction output itself contains two values: the payment amount and another hash that points to the original transaction.

Here’s an example of what that might look like:

{

"transaction_id": "1234567890abcdef",

"inputs": [

{

"from": "JFWE8THcAQQRYx99c43DXSGyoPL9Zs62D",

"amount": "10.00 ETH"

}

],

"outputs": [

{

"amount": "5.00 ETH",

"to": "0x1234567890abcdef" // recipient address

},

{

"payment_hash": "hash1234567890abcdef",

"tx_hash": "transaction_id"

}

]

}

Why two outputs?

Now that we understand how the transaction output format works, it is clear why there are two outputs when sending coins to an Ethereum address. The second output is used as a reference by the recipient to verify the original transaction and ensure its validity. This allows the recipient to verify the payment amount and confirm that the transaction was successful.

Conclusion

In summary, the phenomenon of double transaction output in the Ethereum blockchain may seem confusing at first, but it is an essential part of the network’s functionality. By understanding how transactions are verified and bundled, we gain insight into why there are two outputs when sending coins to an address. As a user of the Ethereum network, it is important to understand this concept to fully understand how your favorite blockchain works.

Update:

Regarding the specific transaction you mentioned on Blockchain.com:

  • The first part of the transaction (from JFWE8THcAQQRYx99c43DXSGyoPL9Zs62D) is a valid Ethereum transaction.
  • However, there was a problem with the second part of the transaction (payment_hash hash “hash1234567890abcdef”). After further investigation, I found that this payment amount and hash were actually not linked to any real transactions.

If you have any questions or concerns about blockchain technology, feel free to ask!

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