What is #UTXO ? 🔍 UTXO: #比特幣的核心運作基石 !
UTXO is the abbreviation of Unspent Transaction Output and is the basic model of #比特幣 blockchain operation.
You can think of it like your Bitcoin balance, but instead of being a number like a bank, it's made up of the unspent outputs from each transaction.
How do UTXOs work?
1️⃣ When you receive a Bitcoin transaction, it is a new UTXO.
2️⃣ When you send Bitcoin, the system uses these UTXOs as "inputs" and generates new "outputs".
3️⃣ The remaining change will automatically generate a new UTXO and return it to your address.
For example:
You have two unspent transactions of 0.5 BTC and 0.3 BTC. If you were to send 0.6 BTC, these two UTXOs would be used as inputs. The system generates a 0.6 BTC to the recipient, and the remaining 0.2 BTC is returned to your own address to form a new UTXO.
Advantages of UTXO:
🔒 Transparent and secure: Every UTXO can be traced to its source to avoid double-spend attacks.
⚡ Efficient processing: The UTXO model allows transactions to be processed in parallel, improving network efficiency.
📜 Clear records: The UTXO model makes the records of the entire blockchain clear and organized.
Differences from account model
Compared with blockchains such as Ethereum that use an "account model", the UTXO model is more like a cash transaction - each transaction has its own "change". The account model is more like a bank account, calculating the balance directly.
The future of the UTXO model?
With the development of Bitcoin, the characteristics of the UTXO model make it still highly competitive in terms of efficient processing, transparency and security. Not only Bitcoin, but also new blockchains like Cardano and some new blockchains adopt an improved version of the UTXO model.
If you don’t know what UTXO is yet, now is the time to learn more about this technology as it is the cornerstone of Bitcoin’s successful operation🚀