Certified Bitcoin Professional Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Certified Bitcoin Professional Exam. Study with flashcards and multiple-choice questions, each question features hints and explanations. Ace your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What does UTXO represent?

Unexchanged Transaction Outputs
Unused Transaction Outputs
Unspent Transaction Outputs
Undefined Transaction Outputs

The correct answer is: Unspent Transaction Outputs

UTXO stands for Unspent Transaction Output, which refers to the outputs of Bitcoin transactions that have not yet been spent and can be used as inputs for new transactions. In the Bitcoin network, when a transaction is created, it is composed of inputs (previously used outputs) and outputs (the new amounts being sent to recipients). The outputs of a transaction can remain unspent and available for use in future transactions, and these outputs are what UTXOs are tracking. When a UTXO is created, it is added to the list of available outputs that can be spent in subsequent transactions. This system plays a crucial role in maintaining the integrity and functionality of Bitcoin's transaction model, ensuring that users can only spend their own funds and that the funds exist in the network as valid outputs. In summary, UTXOs are essential because they represent the remaining balances that users can utilize, and they help to prevent double-spending by providing a clear structure for tracking which transaction outputs have been consumed and which are still available to be spent.