Lesson 9: "Combining and Splitting Value" How to process multiple transactions at once

Why does this lesson matter?

In this lesson, you will learn about the UTXO of Bitcoin. Bitcoins are usually managed in a wallet, but the wallet does not actually store the bitcoins themselves. The wallet only shows the total amount of bitcoins that the wallet can currently handle from all the previous bitcoin transactions recorded in the blockchain. This total amount of bitcoins that can be handled is called UTXO.

What you can learn in this lesson

  • About Bitcoin's UTXO
  • Minimum Unit of Bitcoin

UTXO, the unused balance of bitcoin

Sending and receiving bitcoins can be done by using a wallet.

In the case of bitcoin, you cannot send more than the amount of bitcoin you are managing.

In the case of bitcoin, to calculate the amount of bitcoin under your control, you have to calculate all of your past transactions.


The reason why this is done is because the minimum unit of bitcoin is not 1.

The minimum unit of bitcoin is 0.00000001BTC, which is called "1satoshi" after its inventor.

Therefore, it should be easy to divide it into units smaller than one.


However, processing all transactions for every 0.00000001 BTC is very inefficient, so usually multiple bitcoin transactions need to be processed together.

The transaction history can also be checked from time to time to ensure that no fraud has occurred.


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Lesson 9: "Combining and Splitting Value" How to process multiple transactions at once

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