Skip to content
New issue

Have a question about this project? Sign up for a free GitHub account to open an issue and contact its maintainers and the community.

Sign up for GitHub

By clicking “Sign up for GitHub”, you agree to our terms of service and privacy statement. We’ll occasionally send you account related emails.

Already on GitHub? Sign in to your account

Jump to bottom

Update 4-UTXO_and_account_models.md #25

Open
wants to merge 1 commit into
base: master
Choose a base branch
from
Open

Update 4-UTXO_and_account_models.md #25

Changes from all commits
Commits
Show all changes
1 commit
Select commit
File filter

Filter by extension

Filter by extension
Conversations
Failed to load comments.
Loading
Jump to
Jump to file
Failed to load files.
Loading
Diff view
Diff view
2 changes: 1 addition & 1 deletion en/2-wallet/4-UTXO_and_account_models.md
View file
Open in desktop
Original file line number Diff line number Diff line change
@@ -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.

Expand Down