UTXO

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UTXO stands for Unspent Transaction (TX) Output. Every on-chain bitcoin transaction sends bitcoin to one or more addresses, from at least zero (in case of a coinbase transcation) addresses.

A bitcoin wallet balance is actually the sum of the UTXOs controlled by the wallet's private keys.

UTXO set

The UTXO set is the collection of all addresses with unspent outputs.

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