UTXO
Bitcoin tracks spendable transaction outputs rather than account balances. Wallets spend existing outputs and create new ones.
Why it matters
Bitcoin tracks spendable transaction outputs rather than account balances. Wallets spend existing outputs and create new ones.
Key ideas
- Bitcoin tracks spendable transaction outputs rather than account balances. Wallets spend existing outputs and create new ones.
- This topic belongs to California Bitcoin’s transactions knowledge layer.
- Use primary and technical sources where possible, and distinguish protocol facts from market narratives.
Primary and technical sources
Bitcoin Developer DocumentationBitcoin.orgBitcoin: A Peer-to-Peer Electronic Cash SystemSatoshi Nakamoto
Related concepts
Ways people ask about this
- What is a UTXO in Bitcoin?
- Why do UTXOs matter to Bitcoin users?
- How do Bitcoin wallets use UTXOs when sending a transaction?
- Why does my Bitcoin wallet have multiple UTXOs?
- Can having too many small UTXOs become a problem?
- How is Bitcoin’s UTXO model different from a bank account balance?