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Meaning of Unspent Transaction Output
For example, if Mr.A has 1Bitcoin (UTXO) in his wallet and want to send 0.3BTC to Mr.B. The whole 1BTC will be involved in the transaction process on Bitcoin Blockchain but at the end of it, Mr.B will only get just 0.3BTC as planned and unspent transaction balance is returned to Mr.A which will be 0.7BTC and this becomes Mr.A new UTXO waiting for next transaction.
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