From 0aa40a41792dcd7ea00ef0fb52487151db74d34b Mon Sep 17 00:00:00 2001 From: Mandeep Sekhon Date: Sat, 3 Apr 2021 09:50:15 +1100 Subject: [PATCH] Update 4-UTXO_and_account_models.md --- en/2-wallet/4-UTXO_and_account_models.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/en/2-wallet/4-UTXO_and_account_models.md b/en/2-wallet/4-UTXO_and_account_models.md index 6db0a02..3bc6a21 100644 --- a/en/2-wallet/4-UTXO_and_account_models.md +++ b/en/2-wallet/4-UTXO_and_account_models.md @@ -1,7 +1,7 @@ ## UTXO Model One of the main functions of a wallet is to facilitate the transfer of assets. Assets on NEO are divided into two categories; UTXO-based (Unspent transaction outputs) and account-based. In NEO, NEO and GAS follow the UTXO model, while NEP-5 tokens follow the account model. Lets explore both in more detail. -First, let us consider a simple example where a user has 10 NEO. This 10 NEO actually consists of multiple UTXOs. The sum of all the UTXOs must equal 10. For example this 10 NEO may be consist of 3 UTXOs. UTXO_1 is worth 2 NEO, UTXO_2 is worth 3 NEO, and UTXO_3 is worth 5 NEO, which sums up to the total balance of 10 NEO. So if we need to send someone 3 NEO then we can simply use UTXO_2 3 as the input of the transaction, and the recipient receives as an output one UTXO that is also worth 3 NEO. +First, let us consider a simple example where a user has 10 NEO. This 10 NEO actually consists of multiple UTXOs. The sum of all the UTXOs must equal 10. For example, these 10 NEO might consist of 3 UTXOs. UTXO_1 is worth 2 NEO, UTXO_2 is worth 3 NEO, and UTXO_3 is worth 5 NEO, which sums up to the total balance of 10 NEO. So if we need to send someone 3 NEO then we can simply use UTXO_2 3 as the input of the transaction, and the recipient receives as an output one UTXO that is also worth 3 NEO. If we try to send 5 NEO, then we can combine the UTXO_1 and UTXO_2 together as the inputs, and the recipient recieves 5 NEO as one single output of the transaction. It becomes slightly more complicated when we need to send an amount where we cannot create a perfect sum of UTXOs.