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What Is The UTXO Model

Category: Blockchain

Unspent Transaction Output (UTXO) is the leftover result (output) if applicable, of a blockchain transaction, which the sender receives and can spend in the future.

UTXOs are associated with a public address on a blockchain and are visible to the entire network. Users cannot be identified from their ownership unless they advertise their address. UTXOs can vary in size but when added together, equal the total balance of a wallet addresses controlled by the wallet's private keys.

Bitcoin uses a UTXO blockchain model. A UTXO has a signature associated with it belonging to the owner and can only be spent once, thereby avoiding the double spending problem. Transaction fees are also included in transactions and subtracted from the UTXO that is received as change.