1

Is UTXO synonymous with leftover money in an address and the only reason UTXO is even a concept is due to security concerns of not changing an address after every transaction? Hence, your "unspent outputs" must be moved to x address.

Or am I missing something completely?

I read that you might have $10 balance in an address but your UTXOs might be $2 and $8 in the same address. How does this affect execution of a transaction on the blockchain?

Can somebody please shed some light on the difference between UTXOs and current address balance?

Thank-you!

4

Is UTXO synonymous with leftover money in an address and the only reason UTXO is even a concept is due to security concerns of not changing an address after every transaction? Hence, your "unspent outputs" must be moved to x address.

Not really. A UTXO is more like a particular bill or coin in that it's a specific "chunk" of value.

The reason UTXO is a concept is because bitcoin is designed as a set of UTXOs rather than as a balance. It's the same way cash is designed as a set of bills and coins rather than a balance. When you say, "I have $100.43 in cash", you mean that you have some set of bills and coins whose value totals to that amount. This is analogous to a set of UTXOs in bitcoin.

Or am I missing something completely?

I think what you're missing is that bitcoin was not designed to have accounts with balances as the primary implementation but to instead have a set of unspent outputs.

I read that you might have $10 balance in an address but your UTXOs might be $2 and $8 in the same address. How does this affect execution of a transaction on the blockchain?

The blockchain doesn't care about addresses. If you have two UTXOs that you have the correct key(s) to claim, you can form a transaction that claims those two UTXOs and creates some new UTXOs as its output.

Can somebody please shed some light on the difference between UTXOs and current address balance?

A "current address balance" is the total value of all the UTXOs a particular key can claim.

  • So what you're saying is that a (non HD) private key can have one address and multiple UTXOs which total the balance on that address? – wild_nothing Aug 6 at 22:09
  • 4
    If you total the UTXOs, you get a number that you can think of as the balance on that address. But the blockchain itself doesn't give that number any particular meaning -- it's just UTXOs. – David Schwartz Aug 6 at 22:16

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.