Page Summary
A UTXO is the unspent output of a blockchain transaction. Unspent transaction output (UTXO) is the abstraction of electronic money. Each UTXO is analogous to a cryptocurrency token and represents value. Bitcoin uses the UTXO model. With UTXO models users do not have accounts or balances but sent individual coins and tokens (UTXOs) to each other similar to cash. The owner of an UTXO signs a message (transaction) to transfer the ownership of the UTXO to the receiver’s public key.
UTXO set
A UTXO set represents all coins in a cryptocurrency system. One can calculate the total supply of a cryptocurrency by summing up all UTXOs. Blockchain inputs are removed from the UTXO set for every transaction. At the same time, outputs create new UTXOs that are added to the UTXO set. Unspent outputs can be used to fund further cryptocurrency transactions. Only unspent outputs can be reused to prevent double-spending and fraud.
Disclaimer
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Crypto assets are complex and carry a high risk of volatility and loss. Trading or investing in crypto assets may not be suitable for all investors. Take 2 mins to learn more
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
Stefan Grasic (Dipl.-Jur) is the owner of Business24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active stock, CFD, crypto and general investment researcher, advising blockchain companies such as Blockbird, GoCrypto, Hive Terminal at their start up level. Stefan began trading in 2010 as a college student. Money was tight,…