Transaction Inputs

Transaction inputs are the references to previous unspent transaction outputs that provide the funds for a new transaction. Each input includes a reference to the specific output being spent and a cryptographic signature to prove authorization.

In the UTXO model, the sum of inputs must equal or exceed the sum of outputs, with the difference serving as a fee for the network validators. This structure ensures that no funds are created out of thin air and that only the rightful owner can spend the assets.

It is the fundamental mechanism for transferring value in Bitcoin-like systems.