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judymcconville@roadrunner.com 2017-04-30 10:11:52 -07:00
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@ -62,7 +62,7 @@ You may also notice a lot of strange and indecipherable fields and hexadecimal s
[[tx_inputs_outputs]] [[tx_inputs_outputs]]
=== Transaction Outputs and Inputs === Transaction Outputs and Inputs
((("transactions", "outputs and inputs", id="Tout06")))((("outputs and inputs", "outputs defined")))((("unspent transaction outputs (UTXO)")))((("UTXO sets")))((("transactions", "outputs and inputs", "output characteristics")))The fundamental building block of a bitcoin transaction is a _transaction output_. Transaction outputs are indivisible chunks of bitcoin currency, recorded on the blockchain, and recognized as valid by the entire network. Bitcoin full nodes track all available and spendable outputs, known as _unspent transaction outputs_ or _UTXO_. The collection of all UTXO is known as the _UTXO set_ and currently numbers in the millions of UTXO. The UTXO set grows as new UTXO is created and shrinks when UTXO is consumed. Every transaction represents a change (state transition) in the UTXO set. ((("transactions", "outputs and inputs", id="Tout06")))((("outputs and inputs", "outputs defined")))((("unspent transaction outputs (UTXO)")))((("UTXO sets")))((("transactions", "outputs and inputs", "output characteristics")))((("outputs and inputs", "output characteristics")))The fundamental building block of a bitcoin transaction is a _transaction output_. Transaction outputs are indivisible chunks of bitcoin currency, recorded on the blockchain, and recognized as valid by the entire network. Bitcoin full nodes track all available and spendable outputs, known as _unspent transaction outputs_ or _UTXO_. The collection of all UTXO is known as the _UTXO set_ and currently numbers in the millions of UTXO. The UTXO set grows as new UTXO is created and shrinks when UTXO is consumed. Every transaction represents a change (state transition) in the UTXO set.
((("balances")))When we say that a user's wallet has "received" bitcoin, what we mean is that the wallet has detected an unspent transaction output (UTXO) that can be spent with one of the keys controlled by that wallet. Thus, a user's bitcoin "balance" is the sum of all UTXO that user's wallet can spend and which may be scattered amongst hundreds of transactions and hundreds of blocks. The concept of a balance is created by the wallet application. The wallet calculates the user's balance by scanning the blockchain and aggregating the value of any UTXO that the wallet can spend with the keys it controls. Today, all wallets maintain a database or use a database service to store a quick reference set of all the UTXO they can spend with the keys they control. ((("balances")))When we say that a user's wallet has "received" bitcoin, what we mean is that the wallet has detected an unspent transaction output (UTXO) that can be spent with one of the keys controlled by that wallet. Thus, a user's bitcoin "balance" is the sum of all UTXO that user's wallet can spend and which may be scattered amongst hundreds of transactions and hundreds of blocks. The concept of a balance is created by the wallet application. The wallet calculates the user's balance by scanning the blockchain and aggregating the value of any UTXO that the wallet can spend with the keys it controls. Today, all wallets maintain a database or use a database service to store a quick reference set of all the UTXO they can spend with the keys they control.