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How Does a Transaction Input Reference a Specific UTXO?

A transaction input references a specific UTXO by including two pieces of information ▴ the Transaction ID (TXID) of the previous transaction that created the UTXO, and the output index number (v-out) within that previous transaction. This combination uniquely identifies the specific coin amount that the new transaction is authorized to spend.

The input also contains the unlocking script (signature) that proves the sender's ownership of the UTXO.

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