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Bitcoin FAQ

A collection of frequently asked questions to help you understand Bitcoin better.

What is a Bitcoin transaction hash?

A Bitcoin transaction hash is a transaction ID. That is how you identify a Bitcoin transaction. You can look up any Bitcoin transaction using its transaction ID, as all transactions are stored on Bitcoin’s blockchain with their unique respective IDs.

What is a UTXO?

A UTXO is an unspent transaction output. It determines how many coins you have available to spend. Bitcoin does not store an account balance (using account balances creates vulnerabilities). Instead, it ensures that you have enough unspent outputs to make your payment.

What is a Bitcoin private key?

A Bitcoin private key is a string of characters generated by a cryptographic algorithm. The key is required to sign outgoing transaction from your Bitcoin wallet. Your signature is required to successfully complete a transaction. Your private key can be used to recover your Bitcoin wallet. Never send your private key to anyone, as it can be used to steal your coins.

My computer’s broken, how do I recover my Bitcoins?

There are several ways to recover your wallet from a faulty computer and it depends on the type of wallet. I wrote a comprehensive guide explaining various ways in which you can recover your wallet.