What the heck are PSBTs?

One of the more interesting ideas we’ve seen this past month is using Partially Signed Bitcoin Transactions (PSBTs) to facilitate trustless Inscription sales. A PSBT allows multiple parties to add inputs to a transaction, e.g. an Inscription & the “payment”, with the transaction output going to the seller.

Developer Oren Tomtov launched OpenOrdex.org using the concept of PSBTs. Several transactions have occured to date, notably Dennis Pourteaux’s dutch auction, and the infamous Dickbutt Inscription 01 was listed for 100BTC last week (unsold as of writing). PSBTs represent a minority of the volume, with OpenOrdex cumulative volume in the low 6 figures.

The current tooling for PSBTs is limited and not very user-friendly, but we anticipate development of more retail-facing wallets in the near future.