Value beyond the halving: the real economics of Bitcoin lies with its programmable unspent transaction outputs (UTXOs)

Written by Richard Baker Founder & CEO at Tokenovate

As Bitcoin in its many formats (BTC, BCH, BSV, BTG, BCA etc.) completes another halving event, the spotlight is often directed at the expected effects on its market price, hash capacity and miner economics. However, to truly understand Bitcoin's economic impact and future potential, you must dig into its foundational embedded technology - particularly its use of unspent transaction outputs (UTXOs). UTXOs not only differentiate the Bitcoin protocol from other account-based blockchains, but also illustrate the profound possibilities of programmable utility - or the internet of value.

The Bitcoin protocol

The Bitcoin protocol is a Proof of Work (PoW), UTXO-based embedded technology. It’s akin to protocols such as TCP/IP, IPv4/v6, EDI or even Bluetooth. It establishes a core communication mechanism within a network through a peer-to-peer connection that exchanges value, checks double-spend and maintains high fidelity, configurable private or public books and records. The Bitcoin protocol ca…