I am digging into the raw transaction format.
I have a couple of questions:
- Why is there a checksum in the transaction output? The checksum should be verified by the client (wallet) when the address is entered by the user to catch any typo, but I don’t see why we would need a checksum in the ouput itself.
- Why is there a derivation path in the transaction ouput? You’re locking the funds in one specific address, why would you need more than just the public key (or hash of public key)? Also, it kind of ruins privacy?
- What is the format of a pay-to-script output?