How does the UTXO model work in Cardano?

3 answers

• Lundberg AliMar 21, 2025 · 5 months ago
  The UTXO model is a fundamental concept in blockchain technology, including Cardano. In this model, every transaction creates new UTXOs, which are essentially the outputs of the transaction. These UTXOs can then be used as inputs in future transactions. When a transaction is validated, the UTXOs used as inputs are marked as spent and new UTXOs are created as outputs. This model ensures that the total amount of inputs equals the total amount of outputs, maintaining the balance of the system. The UTXO model provides a transparent and efficient way to track the ownership and movement of digital assets within the Cardano blockchain.
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• Anshika RajJul 11, 2025 · 2 months ago
  The UTXO model in Cardano works similarly to how it works in other blockchain networks. Each UTXO has a specific value and can only be spent once. When a user wants to send ADA (the native cryptocurrency of Cardano), they need to provide one or more UTXOs as inputs to the transaction. These UTXOs are then consumed and new UTXOs are created as outputs, with the specified amount of ADA being sent to the recipient's address. The UTXO model ensures that transactions are atomic and that double spending is prevented, as each UTXO can only be used once. This model also enables greater scalability and parallel processing of transactions.
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• Sabrina Eymard-DuvernayJun 21, 2022 · 3 years ago
  In the context of BYDFi, the UTXO model in Cardano is an important feature that allows for secure and efficient transaction processing. BYDFi leverages the UTXO model to ensure the integrity and transparency of transactions on its platform. By using this model, BYDFi can provide users with a reliable and trustworthy trading experience. The UTXO model in Cardano, combined with BYDFi's advanced technology and user-friendly interface, makes it a preferred choice for cryptocurrency traders.
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