UTXO Management

UTXO Management refers to the handling of Unspent Transaction Outputs (UTXOs) in cryptocurrencies like Bitcoin. In this model, every transaction consumes previous outputs (inputs) and creates new outputs that can be spent in future transactions. Effective UTXO management is crucial for wallet developers and users to efficiently track the availability of funds, optimize transaction fees, and enhance privacy. It involves strategies for monitoring, consolidating, and selecting UTXOs to spend, thus ensuring better performance and security in cryptocurrency transactions.