Unspent Transaction Output (UTXO)
Unspent Transaction Output (UTXO) is a model used in certain blockchain systems, most notably Bitcoin, to represent the output of a transaction that has not been spent. UTXOs are used to track the ownership and availability of cryptocurrency within a blockchain network. Each UTXO holds a specific amount of cryptocurrency and serves as an input for subsequent transactions. UTXO-based systems provide a different approach to transaction handling compared to account-based models, where balances are tracked within accounts. UTXOs offer advantages such as improved privacy and parallel transaction verification but can be less efficient for complex smart contract execution.