Unspent transaction output

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In cryptocurrencies, an unspent transaction output (UTXO) is a distinctive element in a subset of digital currency models. A UTXO represents a certain amount of cryptocurrency that has been authorized by a sender and is available to be spent by a recipient. The utilization of UTXOs in transaction processes is a key feature of many cryptocurrencies, but it primarily characterizes those implementing the UTXO model.^[1]

UTXOs employ public key cryptography to ascertain and transfer ownership. More specifically, the recipient's public key is formatted into the UTXO, thereby limiting the capability to spend the UTXO to the account that can demonstrate ownership of the corresponding private key. A valid digital signature associated with the public key must be included for the UTXO to be spent.^[2]

UTXOs constitute a chain of ownership depicted as a series of digital signatures dating back to the coin's inception, regardless of whether the coin was minted via mining, staking, or another procedure determined by the cryptocurrency protocol.^[2]

Prominent examples of cryptocurrencies adopting the UTXO model include Bitcoin and Cardano. Cardano utilizes an extended version of the UTXO model known as EUTXO.^[3]