You don't need a PhD…

It’s not simple (for me) but with few exemples it’s clear now

UTXO Basics:

Imagine this: You've got 1 $BTC (lucky you!) and you want to buy something for 0.1 $BTC.

The same goes for $SPACE, by the way. You send 0.1 BTC to the seller and keep 0.9 BTC in your wallet.

These 0.9 BTC? They're your UTXO, patiently waiting for future transactions.

UTXO Visibility:

Unlike bank accounts, UTXOs are like open books for everyone to see.

Each UTXO has a unique identifier known as the outpoint.

The outpoint is crucial.

It represents the hash of the previous transaction and its output.

This is how funds are tracked and locked down securely.

UTXO in Action:

When you're ready for a new transaction, you pick UTXOs as inputs.

If you have UTXOs of 2 BTC and 4 BTC but want to buy something for 4.5 BTC, you use both!

Once a UTXO is spent, it can't be used again.

This is how the blockchain ensures that a BTC is spent only once.

UTXO Creation:

But how are UTXOs born? Well, when a transaction happens, a brand-new UTXO is created.

It contains the unspent balance from the previous transaction.

So, every time you use a UTXO, it generates another UTXO.

Each UTXO can only be spent once.

It's a never-ending cycle of creation and spending.

I think it's clearer for you now.

Let’s go build.

JACQUES - SPACE EXPLORER

PS: send me a DM on X(twitter), let's get to know each other, give me feedback, work together: https://twitter.com/Jacques_deBrie