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Unspent Transaction Output

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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.  

unspent-transaction-output

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. 


Methodology
Business24-7 aims to help those interested in cryptocurrency make safe and informed investing decisions. We are dedicated to offering our readers unbiased reviews of leading cryptocurrency exchanges for traders at all levels. Cryptocurrency exchanges are included in our reviews if they are safe, liquid, regulated by proper authority, or decentralized. 

Disclaimer
All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.

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Stefan Grasic (Dipl.-Jur) is the World Wide Director of research for Buisness24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active Crypto, Forex and general investment researcher advising blockchain companies at their start up level. He keeps fit by mountain biking, surfing, skiing and lots of other adrenaline sports.

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