Due to their high value as a financial asset, it is difficult to use cryptocurrencies like Bitcoin for low-volume transactions. Therefore, Bitcoin is divided into small pieces for low-volume transactions. Breaking down financial assets like Bitcoin into small units can be complex and can lead to increased costs. This is where the Unspent Transaction Output (UTXO) model comes into play. UTXO represents the record of the unspent portion of a transaction in the blockchain. When a transfer occurs, the unspent outputs of the transaction are recorded in the database as data to be used in the next transactions. The UTXO model increases transaction efficiency while reducing costs.
