jos3 on Nostr: Is this a good explain UTXOs like I'm five years old post? #bitcoin #utxo Imagine you ...
Is this a good explain UTXOs like I'm five years old post?
#bitcoin #utxo
Imagine you have a toy box full of LEGO bricks. Each brick represents a certain amount of money. Let's say a red brick is $1, a blue brick is $5, and a green brick is $10.
Now, when you want to buy a toy that costs $7, you might take out one blue brick ($5) and one red brick ($1) and another red brick ($1). That's the exact amount you need, right?
When you use these bricks to pay for the toy, they're like using Bitcoin UTXOs. UTXO stands for "Unspent Transaction Output." In our game, it's like the LEGO bricks you haven't used yet. Each UTXO is a piece of Bitcoin you've received but haven't spent.
If you want to spend Bitcoins, you pull out enough UTXOs (or LEGO bricks) to cover the cost. Any leftover money (like if you pulled out a green brick to pay for a $7 toy) would be given back to you as change, just like in real life when you pay with a larger bill. In the Bitcoin world, this change is sent back to you as a new UTXO, like a new LEGO brick.
So, Bitcoin UTXOs are like LEGO bricks in your toy box. You take them out when you want to spend, and if there's any change, you get new bricks to put back in your box!
#bitcoin #utxo
Imagine you have a toy box full of LEGO bricks. Each brick represents a certain amount of money. Let's say a red brick is $1, a blue brick is $5, and a green brick is $10.
Now, when you want to buy a toy that costs $7, you might take out one blue brick ($5) and one red brick ($1) and another red brick ($1). That's the exact amount you need, right?
When you use these bricks to pay for the toy, they're like using Bitcoin UTXOs. UTXO stands for "Unspent Transaction Output." In our game, it's like the LEGO bricks you haven't used yet. Each UTXO is a piece of Bitcoin you've received but haven't spent.
If you want to spend Bitcoins, you pull out enough UTXOs (or LEGO bricks) to cover the cost. Any leftover money (like if you pulled out a green brick to pay for a $7 toy) would be given back to you as change, just like in real life when you pay with a larger bill. In the Bitcoin world, this change is sent back to you as a new UTXO, like a new LEGO brick.
So, Bitcoin UTXOs are like LEGO bricks in your toy box. You take them out when you want to spend, and if there's any change, you get new bricks to put back in your box!