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What is Unspent Transaction Output (UTXO)?
Unspent Transaction Output (UTXO) is a concept in cryptocurrency that refers to an unspent output from a transaction. When someone sends or receives digital currency, the transaction consists of two parts – inputs and outputs. The input is the amount of currency sent by the sender and the output is what remains after deducting any fees for sending it. This remaining amount, known as UTXO, can be used in future transactions, allowing users to keep track of their funds. In other words, UTXOs are like bank accounts where you have both debits and credits: when you send money somewhere else there will be one less debit available but one more credit added at the same time.
