Unspent transaction output (UTXO)An unspent transaction output (UTXO) refers to a transaction output that can be used as an input in a new... Read More is a data structure for the amount of cryptocurrency a user can spend and is used to track cryptocurrency balances. It is a fundamental element of BitcoinBitcoin is a cryptocurrency. It is a decentralized digital currency that is based on cryptography. As such, it can operate without the... Read More and many other cryptocurrenciesA digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by... as it defines where each blockchain transactionA blockchain transaction is a digital recording of an event or action stored in a public, decentralized ledger. A blockchain... Read More starts and finishes. Cryptocurrency transactions are inputs and outputs. In the UTXO model, each user has a UTXO associated with their public keyIn public-key cryptography - one of the basis of cryptocurrency, digital keys are generated from a large random number through a cryptographic... Read More. When a transactionA transaction is a record of an event that occurred in the past. Transactions typically occur during the course of... Read More occurs, one or more of a user’s UTXOs serves as the input. The user then provides their digital signatureA digital signature is a cryptographic mechanism designed to provide proof of authority and authenticity in electronic form. In blockchain... Read More to confirm ownershipEvery transaction and block on a blockchain has an owner. An owner is any entity (person, group, or organization) with... Read More over those inputs, resulting in outputs. The UTXOs consumed are “spent” and no longer usable. Meanwhile, the outputs from the transaction become new UTXOs, which can be spent in a new transaction later.
