And anyone know if it’s possible to do this in 0 blocks? Spend from an output and spend from the change in the same block? Not whether current wallets support it, but in theory. I think sender can inform the recipient of an input that they haven’t seen on the chain yet right so should be possible?
If I recall correctly, cut-through is performed in the mempool. If the mempool validation check that the input is either an output in the utxo set or in an output in the mempool, then it can just add the 2nd tx and do the cut-through to get the aggregate transaction. So yes, I think it should be possible in theory and there’s a chance we’re doing this today already.
It is an interesting idea, since you could obfuscate the transaction graph by directly spending received outputs in the same block only visible to someone who monitors and stores the mempool. The first time I heard about cut-through I though that was its exact purpose.