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Bitcoin Privacy Series #2 - Address Reuse
Bitcoin transactions often involve multiple inputs and outputs because the system is designed to allow users to send and receive multiple. Unspent transaction outputs are part of the distributed database technology behind Bitcoin and other cryptocurrencies. Bitcoin uses UTXOs, but. There are no accounts or balances in bitcoin; there are only unspent transaction outputs (UTXO) scattered in the blockchain. A UTXO can have an arbitrary value.

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The senders do not need to trust the nodes they use to broadcast the transaction, as long as they use more than one to ensure that it propagates. In other words, if you have a 20 bitcoin UTXO and want to pay 1 bitcoin, your transaction must consume the entire 20 bitcoin UTXO and produce two outputs: one paying 1 bitcoin to your desired recipient and another paying 19 bitcoin in change back to your wallet. Using the total input of 4. The script verifies that the provided public key does hash to the hash in scriptPubKey, and then it also checks the signature against the public key.