42 sats \ 0 replies \ @jennann 30 Oct 2023 \ on: Trying to understand what UTXOs are all about bitcoin
  1. You receive a digital note of 0.5 BTC in your wallet. This is a UTXO.
  2. You want to pay a friend 0.3 BTC.
  3. You use your 0.5 BTC note, and you get back a new note of 0.2 BTC as change. This new note is a new UTXO in your wallet.
  4. The old 0.5 BTC note is gone, used up, and your friend now has a new UTXO of 0.3 BTC.
Just like with cash, once you use a note (UTXO), it's gone, but you get change back as a new note (UTXO), ready to be spent in the future.
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