What is the role of UTXO in the Cardano blockchain?

3 answers

• NanditaSep 04, 2025 · 3 months ago
  UTXOs play a crucial role in the Cardano blockchain by representing the unspent outputs of transactions. Each UTXO contains a certain amount of ADA, the native cryptocurrency of Cardano. These UTXOs are used as inputs for new transactions, where the ADA is transferred to different addresses. This system ensures the transparency and security of transactions on the Cardano network, as the UTXOs can be verified and traced back to their origin. Additionally, UTXOs enable the implementation of features like multi-signature transactions and smart contracts on the Cardano blockchain, making it a versatile and powerful platform for decentralized applications.
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• osmary figueraDec 26, 2020 · 5 years ago
  In simple terms, UTXOs are like digital coins in the Cardano blockchain. When you make a transaction, the UTXOs associated with your address are used as inputs, and new UTXOs are created as outputs. These outputs can then be used as inputs for future transactions. This UTXO model provides a clear and transparent record of all transactions on the blockchain, ensuring that no double-spending occurs. It also allows for greater privacy, as the UTXOs do not reveal the exact amount of ADA held by an address. Overall, UTXOs are essential for maintaining the integrity and security of the Cardano blockchain.
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• jami gulfamJul 20, 2021 · 4 years ago
  UTXOs are an integral part of the Cardano blockchain, and they serve as the basis for transaction validation and verification. When a transaction is made, the UTXOs associated with the sender's address are used as inputs, and new UTXOs are created as outputs. These UTXOs can then be used as inputs for subsequent transactions. This UTXO model ensures that transactions are valid and that no ADA is double-spent. It also allows for greater scalability and parallel processing, as each UTXO can be processed independently. The use of UTXOs in the Cardano blockchain contributes to its overall efficiency and security, making it a reliable platform for digital transactions.
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