What is a UTXO in BlockChain?

What is UTXO in BlockChain???

Unspent outputs can be used as inputs to a transaction. Inputs will then be converted to outputs as new UTXO that can be spent in future transactions

A UTXO is an unspent transaction output. In an accepted transaction in a valid blockchain payment system (such as

Bitcoin), only unspent outputs can be used as inputs to a transaction. When a transaction takes place, inputs are

deleted and outputs are created as new UTXOs that may then be consumed in future transactions.

In the Bitcoin network, which uses this model, a UTXO is the amount that is transferred to a Bitcoin address (along with information required to unlock the output amount*) during a transaction. Received amounts (UTXOs) are used

individually during a transaction and new outputs are created – one for the receiver and, if applicable, one for the amount that is left over (change output). The amount

sent to the recipient becomes a new UTXO in the recipient’s address while the change output becomes a new UTXO in the sender’s address that may be used in a

future transaction

Corda uses a UTXO model – an entry is

either historic (sometimes referred to as

"spent" or "consumed") or current

(sometimes referred to as "unspent" or

"unconsumed"), but it cannot be changed.

Corda assumes that data being processed

represents financial agreements between

identifiable parties and that these

institutions require a significant number of

such agreements to be managed by the

platform. Therefore, Corda must be able to

support parallel execution, while also

ensuring correct transaction ordering when two transactions seek to act on the same piece of shared state. A UTXO model provides this, allowing transactions to be processed independently and in parallel, even for high traffic legal entities

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