Unspent Transaction Output (UTXO)

Unspent Transaction Output (UTXO) is a fundamental concept in blockchain technology, particularly in Bitcoin. It refers to the output of a cryptocurrency transaction that has not yet been spent. When a transaction occurs, inputs are consumed, and outputs are created. These outputs become new UTXOs. They represent the amount of cryptocurrency available to be used in future transactions. Each UTXO is associated with a specific address and can be used as an input in subsequent transactions. Managing UTXOs efficiently is crucial for wallet operations and network scalability.