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What is UTXO?

Unspent Transaction Output; a model used by some cryptocurrencies to track and validate transactions.

Key details

Discrete
Each UTXO represents a specific amount of cryptocurrency.
Immutable
Once created, a UTXO cannot be altered, only spent entirely.
Traceable
Allows for easy tracking of transaction history.
Scalability
Can potentially offer better scalability than account-based models.

Examples

  1. 01In Bitcoin, when you receive BTC, it's stored as one or more UTXOs in your wallet.
  2. 02When spending Bitcoin, you're actually sending one or more entire UTXOs.
  3. 03Change from a transaction creates a new UTXO with the remaining balance.