Unspent Transaction Output (UTXO)

The amount of digital cash that is still available after a crypto transaction is known technically as an unspent transaction output (UTXO). You can think of it as the change you get after making a purchase, but it is actually a transaction output in the database that the network produced to support non-exact change transactions and is not a lower denomination of the currency.

As an accounting metric, the portion of the total cryptocurrency that isn’t utilized in a transaction is used. Every transaction has an input and an output, much like in double-entry bookkeeping.

UTXO, which has become a protocol for distributing the data fragments that makeup cryptocurrency, which can be challenging to comprehend at first. UTXO is viewed by a cryptocurrency network or developer very differently from how a regular cryptocurrency user does.

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