Unspent transaction output (UTXO)

Unspent transaction output (UTXO) refers to a specific output of a previous cryptocurrency transaction that has not yet been used as an input in another transaction. In simpler terms, when a person sends cryptocurrency to another person or entity, the transaction creates an output that indicates the amount of cryptocurrency sent and the recipient's public address. If the recipient wants to use that cryptocurrency again, they must use that specific output as an input in their next transaction. This system of UTXO helps to ensure the integrity of the cryptocurrency network and prevents double-spending. If a specific output has already been used as input in a transaction, that output is considered spent and can no longer be used in any further transactions. Overall, UTXO is an important part of the cryptocurrency protocol, ensuring that each unit of cryptocurrency can only be spent once and that the network remains secure.