Unspent transaction output
nostr:npub1utx00neqgqln72j22kej3ux7803c2k986henvvha4thuwfkper4s7r50e8 I know we talked a bit yesterday, but I forgot to ask exactly what does UTXO stand for. Clearly transaction, but is it used to note the in/out tx?
Discussion
Thanks. Went and read about it yesterday. Still not sure I totally get it except for how it makes sense if 1 btc is send for a tx costing 0.5 btc, that the result is one 1btc tx, and then the unspent 0.5 btc returning to the spending wallet
Bitcoin transactions have inputs (btc being spent) and outputs (where the money goes).
You can think of your btc balance as a bunch of (digital) gold coins. If I send you 0.1 btc you now have a 0.1 denomination coin, and if I then send you 0.2 btc you now have two coins: 0.1 and 0.2
If you send 0.25 to someone else, its the equivalent of melting both of your coins, and minting a new 0.25 denomination coin and a 0.05 denomination coin. You send the former and keep the latter.
Coins, are UTXOs because they're the output of a previous transaction that generated them and have not been melted yet (thus, unspent).