What is the meaning of UTXO in the context of cryptocurrency?

3 answers

• Dec 16, 2021 · 3 years ago
  UTXO stands for Unspent Transaction Output, and it refers to the output of a transaction that has not been used as an input in any subsequent transaction. In simpler terms, it represents the amount of cryptocurrency that a user has in their wallet and can spend. When a transaction is made, the UTXO is used as an input, and the remaining amount is sent back to the user as a new UTXO. This system ensures that each transaction is valid and prevents double spending.
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• Dec 16, 2021 · 3 years ago
  UTXO is like the balance in your bank account. When you receive cryptocurrency, it is added to your UTXO. When you send cryptocurrency, the UTXO is used as the input for the transaction. If the UTXO is larger than the amount you want to send, the remaining balance is sent back to you as a new UTXO. This mechanism ensures the integrity of the blockchain and prevents fraud.
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• Dec 16, 2021 · 3 years ago
  In the context of cryptocurrency, UTXO represents the unspent coins in a user's wallet. It is an essential concept in the transaction process as it ensures that each transaction is valid and prevents the same coins from being spent multiple times. When a transaction is made, the UTXO is used as an input, and the remaining coins are sent back to the user as a new UTXO. This system provides transparency and security in cryptocurrency transactions.
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