For example, let’s assume that you have 10 bitcoins in your . You may think that it is just one balance, but your funds are comprised of several UTXOs. UTXOs are added every time a deposit is made.
Furthering the example, let’s say you would like to send 6 bitcoins to your friend “A.” Since UTXOs cannot be split, there is no way to send the exact amount of coins (unless the exact UTXO amount is available).
When 2 and 5 UTXOs are sent from your to friend “A,” they will receive a 6 UTXO and you receive 1 UTXO back as a leftover. Any combination of UTXOs may be used for transactions. Since the 2 and 5 UTXOs were withdrawn from your , these UTXOs are deleted immediately. And you will receive new 1 UTXO back into your .
That is called spend UTXOs, which are removed after each transaction so that it can prevent double-spend attacks.
Double-spending is when a digital coin is spent more than once in a transaction. Unlike fiat money, digital coins are managed by a digital file that may be duplicated or falsified and sent to another address while keeping the original file.
verifies the existence of a coin by checking the validity of the transaction through the unspent output value recorded in the .
Note that in this example it does not include transaction fees, but that needs to be included in transactions for the miners. The transaction fee will be subtracted from the UTXO when you receive it as leftovers.
Even UTXOs simplifies the accounting methods of the , but not every has implemented UTXOs. Implementing UTXOs is useful for certain blockchains. For example, , MicroBitcoin, and , which are designed for payment will utilize UTXOs. However, which is designed for “smart contracts,” does not use the UTXO model. implemented an account model instead of their .
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Published at Tue, 14 May 2019 02:57:52 +0000
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