Jesus Rodriguez, of Into the Block, recently published some really interesting data on the UTXO sets of Bitcoin and other leading public blockchains. The data gives excellent insight to the actual way coins are being held and moved around by cryptocurrency users.
Analysts Leverage UTXOs to Quantify Onchain Data
UTXOs are Unspent Transaction Outputs. The easiest way to understand UTXOs is to imagine a cryptocurrency token as a 5 dollar bill. If you buy a soft drink for 2 dollars and spend your 5 dollar bill, you should receive 3 dollars in change. You no longer have the 5 dollar bill, the 2 dollars you gave to the soft drink vendor is your input, and now the UTXO of the vendor. Your change is your Unspent Transaction Output or UTXO of 3 dollars. A blockchain simply keeps track of who has access to which UTXOs.
Be aware that not all…
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