The term UTXO refers to the amount of digital currency that a person leaves behind after transacting cryptocurrency such as bitcoin. Letters represent the results of unused transactions. Each bitcoin transaction begins with a currency that is used to balance the ledger. UTXO is constantly processed and is responsible for the beginning and end of each transaction. Even if the transaction confirmation deletes the coin issued from the UTXO database, the ledger still contains the coin records.
- UTXO is the amount of digital currency that remains after a cryptocurrency transaction.
- UTXO is constantly processed and is responsible for initiating and terminating every transaction.
- When the transaction is completed, all unused expenses are returned to the database as entries that may later be used for new transactions.