Bitcoin

Litecoin

Digital currencies emerged as an alternative to traditional fiat, with the goal of exploring new financial opportunities, lowering transaction costs, and promoting financial inclusion. However, early forms of digital currencies, like e-gold, faced challenges in solving the double-spending problem, rendering them impractical for everyday use.The double-spending problem arises from the risk of spending the same money more than once. It causes negative economic consequences and devaluation of the currency. Cryptocurrencies like Bitcoin (BTC), Litecoin (LTC), and NEO, on the other hand, effectively addressed this issue by incorporating the concept of unspent transaction outputs (UTXOs).What is Unspent Transaction Output?An unspent transaction output (UTXO) refers to the output or remaining balance from a transaction that has not yet been spent. In a cryptocurrency wallet, the unspent transaction output (UTXO) actively represents the available balance the owner can spend in future transactions. Instead of a single balance, UTXOs may comprise balances from multiple distinct transactions.For example, let’s say you have 1 BTC in your wallet, and a friend sends you an additional 0.2 BTC. In this case, your total balance would be 1.2 BTC. However, due to the uniqueness of each transaction, this balance would be treated as two separate unspent transaction outputs (UTXOs). The first UTXO would be your original 1 BTC balance, and the second UTXO would be the 0.2 BTC transfer from your friend.To get full insight!Read full article here: <a href="https://defi-planet.com/2023/08/unspent-transaction-output-utxo-in-crypto-explained/" rel="noopener noreferrer nofollow">https://defi-planet.com/2023/08/unspent-transaction-output-utxo-in-crypto-explained/</a>

Unspent Transaction Output (UTXO)

DeFi Planet

Other articles published on Sep 22, 2023

Is Binance Safe? Top Red Flags Crypto Investors Should Know About

Learn How Solana, XRP, and Bitcoin Spark Could Be At The Perfect By Levels

Rollbit price prediction 2024-2030: Is it time to buy RLB?

U.S. slams brakes on election betting – Details

Mastercard Stock: MA Stock Reversing Down From 52-Week High?

After LUNC, Zilliqa Also Gains 10% A Day, Escapes Consolidation

Join our free newsletter for daily crypto updates!