UTXO (Unspent Transaction Output)

The Unspent Transaction Output (UTXO) is a fundamental concept in the Bitcoin and related blockchain protocols, representing a discrete, indivisible amount of cryptocurrency that remains after a transaction and can be used as an input for a new transaction. Unlike the account-based model used by Ethereum, the UTXO model ensures that every unit of currency is accounted for as a specific output from a previous transaction, providing a clear, verifiable, and auditable history of ownership.