Join, Learn, and Build in the UTxO Ecosystem

UTXO is an acronym for ‘Unspent Transaction Output’.

UTXOs are components in a blockchain transaction – the parts that will be used. They’re like stores of value or outputs waiting to be assigned.

In a transaction, instead of breaking down a set value (for example, 5 BTC) into smaller amounts (e.g. sending 3 BTC to Person A and keeping 2 BTC in a wallet), UTXOs treat each component as a separate output. Each is recorded as a separate ledger entry. They exist independently of each other. There’s no partial deduction.

Looking at UTXOs from another angle, they function like metadata. They hold information about each transaction: where it’s from, what’s in it, when it was created, etc.

Our work here is a collective effort. However, we’re realistic in admitting that our motivations differ. We’re basically doubling down on what we have in common, rather than battling for blockchain supremacy.

Greater awareness of how UTXOs work will open more opportunities for individual blockchain users. For example, understanding how to manage UTXOs enables individuals to assert more control over their assets and optimise privacy during transactions.

There’s also a lot of mixed information out there. Creating an authoritative source of truth about the technology, its use cases, and applications is essential moving forward.

Mass adoption of any technology requires immediate relevance and instant accessibility. But the more companies and organisations are aligned to the cause, the greater the UTXO Alliance’s credibility – and the more we can achieve. In many ways, the UTXO Alliance is a safe environment for validating and testing new ideas.

Start by signing up to join via the form below. Once you’ve done that, we’ll regularly send some useful and insightful information about the work we’re doing and ways you can get involved.

But here are a couple of articles to whet your appetite:

Cardano's Extended UTXO Accounting Model
Cardano's Extended UTXO Accounting Model - Part 2