UTXO (Unspent Transaction Output)
Definition
Bitcoin's accounting unit. Each UTXO is a discrete chunk of value from a prior transaction's output. Spending it consumes it entirely; change comes back as a new UTXO to an address controlled by the sender. A wallet's balance is the sum of all UTXOs it controls.
Related terms
- Account model
- Ethereum's approach, where each address holds a running balance incremented or decremented by transactions. Simpler to reason about but less transparent about...
- Block confirmation
- The count of blocks added to the chain after the block containing a specific transaction. Higher confirmation counts mean greater computational cost...
- Distributed ledger
- A transaction record replicated across many independent nodes. Each node holds a full or partial copy and validates new entries against the...
- Private (permissioned) blockchain
- A network where participation is restricted to known, approved nodes. Used by banks and supply chains for transaction settlement. Records are not...
- Public blockchain
- A permissionless network where anyone can read the ledger, submit transactions, or run a node. Bitcoin and Ethereum are public. The ledger...
Explained in
- Blockchain Fundamentals for InvestigatorsBitcoin's accounting unit. Each UTXO is a discrete chunk of value from a prior transaction's output. Spending it consumes it entirely; change comes back as a n...