🤯 A fact that might surprise you: Bitcoin doesn’t use the traditional balance system you find in your bank account!
The Bitcoin network relies on a system called UTXO.
What does that mean? 👇
Instead of storing your balance as a single number that changes after every transaction, Bitcoin relies on outputs from previous transactions that haven’t been spent yet.
A simple example:
Let’s say you have an output worth 1 BTC and want to send 0.3 BTC to someone else.
The transaction could produce:
🔹 0.3 BTC for the recipient.
🔹 Approximately 0.7 BTC returned to you as change, before transaction fees are calculated.
This remaining amount is called a Change Output.
💡 So, Bitcoin transactions consume previous outputs and create new ones—it’s not simply a matter of deducting and adding to a balance as with a bank.
❓ Question: Did you know Bitcoin uses this system, or is this the first time you’ve heard of UTXO?
#Bitcoin #BTC #UTXO #Blockchain #CryptoEducation #
The Bitcoin network relies on a system called UTXO.
What does that mean? 👇
Instead of storing your balance as a single number that changes after every transaction, Bitcoin relies on outputs from previous transactions that haven’t been spent yet.
A simple example:
Let’s say you have an output worth 1 BTC and want to send 0.3 BTC to someone else.
The transaction could produce:
🔹 0.3 BTC for the recipient.
🔹 Approximately 0.7 BTC returned to you as change, before transaction fees are calculated.
This remaining amount is called a Change Output.
💡 So, Bitcoin transactions consume previous outputs and create new ones—it’s not simply a matter of deducting and adding to a balance as with a bank.
❓ Question: Did you know Bitcoin uses this system, or is this the first time you’ve heard of UTXO?
#Bitcoin #BTC #UTXO #Blockchain #CryptoEducation #