The UTXO Model (Unspent Transaction Output Model) is a fundamental component of blockchain technology, particularly in cryptocurrencies like Bitcoin. UTXO represents the amount of digital currency remaining in a transaction output, which has not been spent and can be used as input in future transactions.
Mechanism of UTXO Transaction Structure In the UTXO Model, each transaction consumes UTXOs as inputs and creates new UTXOs as outputs. This model ensures a clear and secure mechanism of tracking digital currency.