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    Unspent Transaction Outputs [UTXO]

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    Categories: Blockchain

    A model comprising of inputs and outputs that determine how transactions are executed on the Bitcoin network. Under this model, when a bitcoin transaction takes place, two UTXOs are created – the first is the total amount in the sender’s wallet that is sent to the recipient; and the second is the change output over and above what the actual transaction stipulates the recipient should receive, and which goes back to the sender’s wallet.

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    Justin Chan
    Dr Justin Chan founded datadriveninvestor.com, a tech application platform designed to help fund managers, individual investors and data scientists uncover outstanding sources of alpha from data. Previously, he specialized in strategy development in a number of hedge funds and served as a senior quantitative strategist at GMO. An expert in microstructure, market liquidity, and behavioral finance, Dr. Chan holds a doctoral degree from UCLA and served as a finance professor at Singapore Management University. He can be reached at justinchan@datadriveninvestor.com.