Bitcoin Nodes track available and spendable unspent transaction outputs, or UTXO. The collection of all UTXO is a 'set'. The UTXO set grows as new UTXO is created and shrinks when UTXO is consumed. Every transaction represents a change (state transition) in the UTXO set.

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https://learn.saylor.org/mod/book/view.php?id=36340&chapterid=18911

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