🧠 DID YOU KNOW $BTC BITCOIN DOESN'T WORK LIKE A TRADITIONAL BANK ACCOUNT?
Bitcoin uses a system called UTXO — Unspent Transaction Outputs.
Here's how it works:
🔹 1. Transaction Outputs
When Bitcoin is received, it creates an output that can later be spent.
🔹 2. Spending Bitcoin
A transaction uses existing unspent outputs as inputs and creates new outputs.
🔹 3. The Change Mechanism
If you spend only part of a UTXO, the transaction can return the remaining value to a change address.
🔹 4. Network Verification
Bitcoin nodes verify that transaction inputs are valid and haven't already been spent.
💡 Why does this matter?
Understanding UTXOs helps explain Bitcoin transaction structure, wallet balances, and how transactions are validated.
MY TAKE: Bitcoin is more than a digital asset. Its underlying design is one of the most interesting parts of the technology.
💬 Did you already know how Bitcoin transactions work, or is this new information for you?
#BinanceUpdatesProofofReservesAddresses #BinanceToResumePhaseOneOfWithdrawals #BinanceSAFUFundTransferCompleted7499BTC #CZDismissesClaimsBinanceHackWasPredicted #YiHe:ProofOfReserves:10TokensAt100%Backing
Bitcoin uses a system called UTXO — Unspent Transaction Outputs.
Here's how it works:
🔹 1. Transaction Outputs
When Bitcoin is received, it creates an output that can later be spent.
🔹 2. Spending Bitcoin
A transaction uses existing unspent outputs as inputs and creates new outputs.
🔹 3. The Change Mechanism
If you spend only part of a UTXO, the transaction can return the remaining value to a change address.
🔹 4. Network Verification
Bitcoin nodes verify that transaction inputs are valid and haven't already been spent.
💡 Why does this matter?
Understanding UTXOs helps explain Bitcoin transaction structure, wallet balances, and how transactions are validated.
MY TAKE: Bitcoin is more than a digital asset. Its underlying design is one of the most interesting parts of the technology.
💬 Did you already know how Bitcoin transactions work, or is this new information for you?
#BinanceUpdatesProofofReservesAddresses #BinanceToResumePhaseOneOfWithdrawals #BinanceSAFUFundTransferCompleted7499BTC #CZDismissesClaimsBinanceHackWasPredicted #YiHe:ProofOfReserves:10TokensAt100%Backing