What Is a UTXO and How Does It Relate to Transaction Verification?
UTXO stands for Unspent Transaction Output, which is a fundamental concept in the Bitcoin model. A UTXO is the remaining cryptocurrency output from a transaction that can be used as an input for a new transaction.
When a user sends funds, they consume one or more UTXOs as inputs, and the transaction generates new UTXOs for the recipient and for the sender as change. Transaction verification ensures that the inputs (UTXOs) are valid, unspent, and that the sum of the inputs is greater than or equal to the sum of the outputs.
Glossar
Verification
Attestation ⎊ Verification within cryptocurrency, options trading, and financial derivatives functions as a critical process confirming the validity of transactions and data integrity, particularly vital in decentralized systems lacking central authorities.
UTXO
Model ⎊ UTXO, or Unspent Transaction Output, represents the accounting model used by Bitcoin and other similar blockchains.