Introduction to UTXOs
UTXOs (Unspent Transaction Outputs) are the core building blocks of Bitcoin, Litecoin, and other UTXO-based blockchains. Each transaction consumes existing UTXOs as inputs and generates new UTXOs as outputs, which represent the wallet's spendable balance.
For example, if James receives 0.8 BTC from a friend, his wallet now holds a UTXO worth 0.8 BTC. When James sends 0.3 BTC to Clara and sets a miner fee of 0.01 BTC, the original 0.8 BTC UTXO is consumed. The transaction creates two new UTXOs: one for Clara (0.3 BTC) and one for James’s change (0.49 BTC).
Typically, change is sent to a newly generated change address derived from the wallet’s XPUB (Extended Public Key), rather than reusing the original address.
UTXOs in Utila
Utila provides comprehensive support for managing assets on UTXO-based chains, offering full visibility and operational control.
Wallet-level visibility
For wallets holding UTXO-based assets (e.g., BTC), Utila provides a Bitcoin Management section with key details:
Main Address – A consistent deposit address used throughout the wallet's lifecycle.
Wallet XPUB – The extended public key from which new addresses (e.g., change addresses) are derived.
Total Balance – The sum of all underlying UTXOs in the wallet.
UTXO Breakdown – A detailed list of each UTXO, including its associated address (often a change address).
UTXO Status – Each UTXO is labeled as Available, Locked, or Frozen.
Confirmations – Number of blocks confirming each UTXO.
Transaction-level visibility
Pre-transfer view – When initiating a transfer, you can view the specific UTXOs selected for the transaction in the amount summary section.
Post-transfer locking – Once a transfer is initiated, the relevant UTXOs are locked and cannot be reused until the transaction is confirmed or canceled.
System-wide indicators – When browsing wallet balances across the system, locked UTXO balances are clearly marked to ensure full transparency.
