Output

In blockchain transactions, an output refers to the destination address and the amount of cryptocurrency being sent. Each transaction can have multiple outputs, specifying how the funds are distributed among various recipients. For example, if a user sends 1 Bitcoin to two different addresses, the transaction would have two outputs, one for each address. Outputs are recorded in the blockchain as unspent transaction outputs (UTXOs) until they are used as inputs in future transactions. The UTXO model, used by cryptocurrencies like Bitcoin, is a fundamental part of how these networks track and verify the ownership of funds.

The UTXO model provides a transparent and secure way to manage transactions, ensuring that each coin can be traced back to its origin. When a user initiates a transaction, their wallet selects from their available UTXOs to fund the transaction, and any leftover amount (change) is returned to the user as a new UTXO. This model not only helps prevent double-spending but also allows for precise tracking of every coin's movement within the network. The clear accounting provided by UTXOs is crucial for maintaining the integrity and trustworthiness of blockchain networks.