Bitcoin
Bitcoin
BTC
$103,539.00
1d: -0.41%
7d: +0.35%
$103,539.00
-0.41%
Ethereum
Ethereum
ETH
$2,495.39
1d: -3.52%
7d: +6.69%
$2,495.39
-3.52%
Polkadot
Polkadot
DOT
$4.72
1d: -2.95%
7d: -5.79%
$4.72
-2.95%
Solana
Solana
SOL
$168.14
1d: -2.74%
7d: -1.57%
$168.14
-2.74%
XRP
XRP
XRP
$2.37
1d: -2.01%
7d: +0.39%
$2.37
-2.01%
Shiba Inu
Shiba Inu
SHIB
$0.00001439
1d: -4.83%
7d: -4.88%
$0.00001439
-4.83%

Unspent Transaction Output (UTXO)

Share this article:
x fb linkedin tg
Table of contents
    1. 0.2. How UTXOs Work
    2. 0.4. Why UTXOs Matter

An Unspent Transaction Output (UTXO) is a chunk of cryptocurrency that remains after a transaction and can be used as input in a new transaction.

How UTXOs Work

In UTXO-based blockchains like Bitcoin, each transaction consumes one or more UTXOs and creates new ones. When you receive crypto, it becomes a UTXO associated with your address. To spend it, your wallet bundles one or more UTXOs to match the amount being sent, with the difference returned as change in a new UTXO.

Why UTXOs Matter

UTXOs ensure transparency, traceability, and simplicity in tracking balances. They prevent double-spending and make it easier to verify transactions. Understanding UTXOs is key for developers and users alike, especially when optimizing transaction fees or building wallets and smart contracts.