UTXO-Based Blockchains

UTXO-based blockchains utilize the Unspent Transaction Output (UTXO) model. In this model, each transaction consumes previous transaction outputs (UTXOs) as inputs and creates new UTXOs as outputs. These UTXOs represent the ownership of digital assets, and the sum of unspent UTXOs associated with a user's address determines their balance. Transactions are validated by verifying that the sum of the inputs equals the sum of the outputs, ensuring that no new coins are created out of thin air.

Visit the following resources to learn more:

• @article@Understanding UTXO: Definition, Functionality, and Blockchain Impact
• @article@What is a Bitcoin unspent transaction output (UTXO)?
• @video@Bitcoin UTXOs Explained Simply with Real Examples