Blockchain Fundamentals

UTXO

UTXO stands for Unspent Transaction Output, a model used in cryptocurrencies like Bitcoin to track spendable funds. Each UTXO represents a chunk of digital currency that can be used in future transactions. Unlike account-based systems, UTXO-based blockchains don’t store balances—they rely on aggregating unspent outputs. This structure enhances privacy, simplifies validation, and supports parallel transaction processing. Understanding UTXOs is essential for developers and users engaging with Bitcoin, Litecoin, and similar blockchain platforms.

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