UTXO Blockchains
TXO blockchains, short for Unspent Transaction Output blockchains, are a specific type of distributed ledger technology used in various cryptocurrencies like Bitcoin, Litecoin, and Bitcoin Cash.
In UTXO blockchains, transactions are represented as a collection of unspent outputs from previous transactions, which become inputs for new transactions. Each output represents an unspent amount of cryptocurrency, and when used as input in a new transaction, it is consumed and divided into new outputs, creating a chain of transaction outputs that can be traced back to the original unspent coins. This UTXO model provides a unique approach to handling transactions, offering advantages in terms of privacy, security, and efficiency in certain scenarios.
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