Can you explain the concept of UTXO in simple terms for beginners in crypto?

3 answers

• Dec 16, 2021 · 3 years ago
  Sure! UTXO stands for Unspent Transaction Output. In simple terms, it refers to the unspent coins from previous transactions. When you make a transaction in cryptocurrency, the coins you receive are stored in a UTXO. Think of it like a digital token that represents the value of the coins you own. When you want to spend your coins, you create a new transaction and include the UTXO as an input. The UTXO is then consumed, and the remaining balance is sent to a new UTXO. This process ensures that each transaction is verified and prevents double spending. So, UTXO is essentially a way to keep track of the ownership and movement of coins in a secure and transparent manner.
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• Dec 16, 2021 · 3 years ago
  Hey there! UTXO is short for Unspent Transaction Output. It's a fancy term used in the world of cryptocurrency to describe the coins you have that haven't been spent yet. Imagine you have a wallet with some coins in it. Each of those coins is represented by a UTXO. When you want to make a payment, you use one or more UTXOs as inputs to your transaction. The UTXOs get consumed, and the remaining balance is sent to a new UTXO. This way, you can keep track of your coins and ensure that they are not spent more than once. It's like having a digital receipt for your coins!
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• Dec 16, 2021 · 3 years ago
  Absolutely! UTXO is an abbreviation for Unspent Transaction Output. It's a concept used in cryptocurrency to keep track of the coins you own. Let me break it down for you. When you receive coins in a transaction, they are stored as UTXOs. These UTXOs represent the unspent coins in your possession. When you want to send coins to someone else, you use one or more UTXOs as inputs to your transaction. The UTXOs are then consumed, and the remaining balance is sent to a new UTXO. This ensures that the coins are not spent more than once and maintains the integrity of the blockchain. So, UTXO is like a digital token that represents the unspent coins you have in your wallet.
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