UTXO
Technology & Computing abbreviation · Cryptocurrency & Blockchain
| Stands for | Unspent transaction output |
|---|---|
| Categories | Technology & Computing |
UTXO stands for Unspent transaction output, a cryptocurrency & blockchain abbreviation.
The accounting model used by bitcoin and similar blockchains, in which each transaction consumes earlier unspent outputs as inputs and creates new outputs; a wallet's balance is the sum of the UTXOs it can spend.
Example: Consolidate your small UTXOs while fees are low so future payments stay cheap.
Usage notes
Spending a UTXO works like paying with banknotes: the whole output is used and any excess returns as "change" to a new address. Ethereum instead uses an account-based model with balances. Many tiny outputs, called dust, can cost more in fees to spend than they are worth.