@Eybyoung
Understanding UTXO (Unspent Transaction Output) In Layman's Term Understanding how blockchain technology works are kinda complicated for a noob that is only beginning to explore the crypto world. I was wondering before upon seeing my read. cash wallet transactions with a huge amount of Bitcoin Cash recorded while the one I have is not the same as what I saw. But as a noob, I never bother to know the depth of it as I don't want any headache. Just the other day, I read @Fexonice1 article that he already has 20 Bitcoin Cash for blogging at reading. cash for almost 1 year. Then this thing came back to my thoughts and check my wallet transactions as well. I even commented on Fexonice's article that it is not accurate because what is recorded is not what I received.
I decided to post it at the noise. cash, **Lerkfrend**, and **Ashma** answered me thoroughly. While Ashma suggested for me to understand better, I must DYOR about UTXO and I did. After what I learned, I have decided to write it down so other noobs will learn as well. As you can see in my read.cash wallet transactions, I already had **26.5 BCH** since the beginning, but I think I only had 2-3BCH received. What is UTXO?
*Image Link* https://blog.monetha.io/utxo/ **UTXO** is an abbreviation of **Unspent Transactions Output,** it refers to a transaction output that can be used as input to a new transaction. UTXO's can be defined in each blockchain transaction from start and finish. Bitcoin and many other cryptocurrencies are using this fundamental element of the UTXO model. Cryptocurrency transactions are made of inputs and outputs. When a transaction is rendered, a user takes one or more UTXOs that serve as an input(s). Then, the user will provide their digital signature to confirm its ownership over the inputs, which will finally result in outputs. When the UTXOs are finally consumed, they will be considered as “spent” and can no longer be used. While the outputs from the transaction will become a new UTXO which can be spent in making new transactions later. Sounds Complicated? Let's give an example. **For example;** Eybyoung has 0.50 BCH in her wallet. The 0.50 BCH is not a fraction coin since she received it from the different tippers, it is rather a collection of UTXO. Let say, two UTXO which are worth 0.35BCH and 0.15 BCH outputs from past transactions. Eybyoung wants to tip Ruffa worth 0.30BCH. Her only option is to break the 0.35BCH unit and send the 0.30BCH to Ruffa while 0.05 BCH back to herself. Eybyoung created a transaction that appears in the network to be like this; **Take my 0.35BCH as an input, break it up, give 0.30BCH to Ruffa's address and give back 0.05BCH to my address.** The 0.35BCH is now a spent output and cannot be reused anymore. While two new UTXO's has been created the 0.30BCH and 0.05 BCH. Eybyoung wallet transaction balance will now show **0.50BCH + 0.30BCH +0.05BCH including the past recorded transactions or the inputs amount of her tippers**. Every transaction done in your wallet is recorded in the ledger, whether it is inputs and outputs. The incoming and outgoing transactions are recorded in the ledger like a **“chain”** which is why crypto runs in a block“chain”, a chain of transactions. Layman's Example; It is like when you pay something in cash, and you like to record it. For example, you buy a shirt worth $25 and you only had a $100 bill. You will tender the $100 then you will receive $75 as exchange. **The record will be like this**, Wallet Cash- $100 Item price - $25 Tender - $100 Change - $75 On your next purchase, you will not tender the $100 because it was **already spent.** On your next purchase, your tender will vary depending on the amount of the item but not $100 anymore since you only had $75 left. In blockchain you created a new UTXO which is the $25 and $75 but the $100 is still recorded because it cannot be deleted in the ledger as crypto has chained mechanism transactions but cannot be used anymore since it was spent already. The more you used the wallet the higher the number of coins shown in your wallet because the incoming and outgoing transactions are recorded. **Reference:** *Binance Academy* https://academy-binance-com.cdn.ampproject.org/v/s/academy.binance.com/en/glossary/unspent-transaction-output-utxo?amp_js_v=a6&_gsa=1&=1&usqp=mq331AQHKAFQArABIA%3D%3D#aoh=16209382171208&referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s&share=https%3A%2F%2Facademy.binance.com%2Fen%2Fglossary%2Funspent-transaction-output-utxo Closing thoughts I hope I give justice to this article and made you understand how cryptocurrency and blockchain work by using the UTXO fundamental element mechanism. If I understand it wrong, you are free to correct me. Thank you for reading! #Club1BCH #We💚BCH
25 comments
Ganon pala yun. Nakakapagtaka lang talaga kasi laki ng nasa wallet pero di pa naman nareach yung amount 😂
Hahaha oo nga asa pa nmn tayo na yun na talaga laman 😂😂 Chained nga pala, kaya blockchain hahaja
Thank you for taking your time to do a research about the subject. It was unbelievable to me for seeing that high figure. I never believe it myself but just used it as tittle to draw attention to the my article. You understand what I mean.
Yeah, I understand it is just clickbait. 😁 anyway, I find answers to my questions so as part of sharing what I learned I wrote it down.
Amazing research though 🤠
Haha, good thing I didn't understand it wrong 😂
Nagcomment na sakin si sir Telesfor about dito, kasama nga daw lahat yung nasend and nareceive mo na BCH. Kala ko din dati laki ng nakuha ko eh😆
I get it now.. And in my 10 months of giving tips to different users. I have accumulated 200+ BCH in my account🤣🤣 so that's the reason.. Yaman ko na grabe.. Sa readcash transaction lng 😂🤣🤣
save ko muna to.. gusto ko din tong basahin..
Well I do understand what your article is trying to explain is very nice that someone pick up the paper and tried to explain it to others that is nice coming from you. I think many others will learn form your article.
Yeah, I hope so. Glad I didn't understand it wrong hehe..thanks for dropping by.
Ang yaman ko na pala🤣🤣🤣 sa ledger lang. I once encountered the word spent and unspent while checking a transaction before. Never I thought this is what it meant. 😁 Thanks dito.. Saved already
Ahhhhh, so lahat ng transaction whether palabas or papasok at kung may natira man, lahat yon marerecord. Basta lahat talaga ng transaction ma e a add. Pinaniwala nilang naka 34.118 BCH na ako 😭, chorrr. Kaya di talaga sya tugma ano. Sana kasi walang na yang UTXO na yan para ung kung alin lang talaga ang nasend at nareceive sa isang address yon nalang talaga.
Pati kase yung na send mo recorded eh haha. Kaya nga blockchain technology sya 😂😂
Ehhh, kqya pala ang lalaki na ng laman ng wallet ko. Dami ko oa naman na na tip, kasama din un ee.
I see, so that's how Blockchain works
Yes, I hope you understand it.
Ayy kaya pala. Di fixed kasi inaadd lahat pati yung na spent mo sa napasok sa wallet 😅 Akala ko pa naman meron na ko 8 bch sa pag blog ko hahaha
Oo recorded lahat yan kahit yung $0.01 na tip natin haha.. chain transactions kasi
Akala ko talaga yun na yung na earn ko dito hahaha. Sarap siguro kapag nagka taon ,😅
The way of the block chain record, daming pinaasa hehe. Thanks sa article mo gorgeous naliwanagan kami😊.
Hehe kaya nga . Welcome happy that many learns from it.
Sabi may 4BCH na ako pero di tugma sa cash out history ko sa coins.ph dun ako mas mas nagrely e kasi history na yun na nakaconvert sa peso haha pero ayos tu kaalaman 😁
Pero di ka ba nagtaka bakit ganon transaction history mo ang laki versus sa mismong cash out mo? Haha
Wala te di na ko nag isip like you ayoko ng sakit ng ulo pero since nalaman ko na tu ayan nag isip na ko hahaha