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River 2y ago 💬 1

What are UTXOs? (Unspent Transaction Output) 🤔

They can likened to physical coins. If you want to spend 5 cents, you cannot spend half of a dime,

Instead, you must spend the entire dime and receive a nickel as change 🪙

This is worth reading about 👇

https://river.com/learn/bitcoins-utxo-model

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todd 2y ago

Good write-up. In addition to what you say here, more attention needs to be paid to UTXO fees. Multiple small UTXOs can result in a high percentage of the UTXO's value being consumed by the fees.