UTXO

UTXO stands for Unspent Transaction Output, a model used by blockchain networks like Bitcoin to manage and validate transactions. In this model, when a transaction occurs, the output becomes an unspent balance until it is used in a subsequent transaction. UTXOs are essential in determining a user’s available balance and are consumed when a new transaction is made. The UTXO model ensures that transactions are atomic, meaning they are either fully completed or not at all, reducing the risk of partial transactions.