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Transaction labeling

Recording the purpose and counterparty of UTXOs so future coin selection can preserve accounting and privacy boundaries.

Recording the purpose and counterparty of UTXOs so future coin selection can preserve accounting and privacy boundaries.

Transaction labeling is best understood as part of a system rather than as an isolated definition. Its related coordinates show the mechanisms, incentives and historical records that give the term practical meaning.

Transaction labeling should be evaluated against a concrete threat model: what is protected, from whom, for how long and at what operational cost. A design may remove one dependency while introducing another, so custody, privacy and verification must be judged as a complete system.

Understanding Transaction labeling helps distinguish a verifiable Bitcoin mechanism or historical record from slogans, products and market narratives.

For the clearest picture, read this entry together with Coin selection, Coin control, UTXO, Bitcoin privacy.

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Linked to related atlas coordinates

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Grounded in a source record

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Explains function and trade-offs

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Part of the open Bitcoin knowledge graph

DOC · 001BIP329 — Wallet Labels Export FormatSpecification
Reviewed 25 July 2026Source-first · No investment advice