Unspent Transaction Output (UTXO)

A discrete, spendable unit of value remaining from a previous transaction, used in account models such as Bitcoin’s to track ownership and prevent double spending.

Example: if you receive 1 BTC and later spend 0.3, your wallet doesn’t ‘subtract’ the amount — it creates a new 0.7 BTC UTXO and a separate 0.3 BTC UTXO sent to the recipient.