Cryptonote derived codes, such as Niobio Cash, use the concept of transaction inputs and transaction outputs to create a transfer of coins from one wallet to another. This often leads to a problem where the transaction being built becomes too large and is rejected by the code. The common workaround is to break the transfer into smaller ones. There is a special kind of transaction, called fusion transaction, that can be used to optimize these entries and prevent the problem. We’ll dig on the details below.

Transaction inputs, or simply tx inputs, can be seem as the money bills someone have on his pocket. Let’s take Carol as example. At some point in time other person or persons give Carol this money and she now keeps them on her pocket. These money bills are the so called tx inputs which, summed up, represent the total amount available she has to spend at this moment. If Carol wants to pay someone a certain amount of money, she must select a group of money bills that compose a value equal or bigger than that required amount, and she must be able to hold them all on her hands.

On Cryptonote’s blockchains, a similar process is used. A transfer between wallets is made by a transaction, which in turn contains a group of tx inputs that represents part (or total) of the funds of the sender, and the tx output locking that amount to the receiver of the payment. The tx output of a transaction will become the tx input for a future transaction, when the receiver of the former transfer will act as a sender.