Replying to Avatar Obiwan Satoshi

Block request nostr:npub1qhe6zzhf3djq3jc9dawgr6kyp9fy5dxkssknm93669nqqcj0jm5sn3xuec

Explain UTXOs like you’re speaking to a 7 year old

Bounty:

12,000 sats if you accept by reposting this

21,000 sat zap when it’s posted

12,000 sat bonus if the 7 year old understands

#nostr #bitcoin #blocktalk

I accept and here's the share and post, all in one.

nostr:nevent1qqszyem73s925ng8r5q28st49umeqyhcfr8px5gxpegdphecdw2uucspzamhxue69uhky6t5vdhkjmn9wgh8xmmrd9skctczyqwyk9x9lhf3vzq47d0w28wnlwt22hwek2f4ys3rfzzlhnqevhmpxqcyqqqqqqgme8ek3

Okay, imagine you have a piggy bank with lots of different compartments. Each compartment has some money in it, like a dollar or two. These compartments are like UTXOs in Bitcoin.

When you want to buy a toy, you need to find the right compartments with enough money to pay for it. You might need to use money from a few different compartments to get the exact amount. That's kind of how Bitcoin works too.

When someone wants to send Bitcoin, they need to find the right UTXOs that add up to the amount they want to send. Then, they use those UTXOs to create a new transaction, and any leftover Bitcoin goes into a new UTXO compartment.

So, UTXOs are like little pockets of Bitcoin that are used to keep track of who owns what. It's a bit like having a really organized piggy bank for Bitcoin!

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