How to Spend UTXOs

1. What does it mean to spend UTXOs?
Spending UTXOs involves using previously unspent transaction outputs as inputs for a new transaction. This process requires referencing specific UTXOs with their unique identifiers (Txid and Vout) and constructing a new transaction.

2. How do I identify which UTXO to spend?
Each UTXO is identified by a Txid (transaction ID), which references the transaction that created the UTXO, and a Vout (output index), which specifies the position of the output within the transaction. For example, if a transaction has multiple outputs, Vout will index them starting from 0.

3. How do I construct a new transaction using UTXOs?
To construct a new raw transaction:

• Input: Specify the Txid and Vout of the UTXO(s) you want to spend.
• Output: Provide the recipient’s address and the amount of Litecoin to send. If there is leftover change, it is typically sent back to your own address as a new UTXO.

4. What happens if one UTXO is not enough to cover the transaction amount?
If a single UTXO is insufficient, you can combine multiple UTXOs by creating an array of Txids (for the UTXOs) and Vouts (the output indices). This allows you to gather enough funds for the transaction by using multiple UTXOs as inputs.

5. How do I sign the transaction?
Once the transaction is constructed, it must be signed using your private key. This step proves that you are the owner of the UTXO and have the right to spend it. The signing process is done through an API or wallet service.

6. How do I broadcast a signed transaction?
After signing, the transaction is broadcast to the Litecoin network. The network nodes validate the transaction, and if it's valid, miners will include it in the next block added to the blockchain.

7. What details do I need to spend a UTXO?
To spend a UTXO, you need:

• Txid: The unique transaction ID of the UTXO.
• Vout: The index of the output in that transaction.
• Recipient Address: The address where you are sending the funds.
• Amount: The amount to be sent, and any change will be returned to your address.

8. Can I spend multiple UTXOs in one transaction?
Yes, if one UTXO doesn't cover the desired amount, you can combine multiple UTXOs in a single transaction. You do this by selecting multiple Txids and Vouts as inputs to meet the required amount.

9. What happens if there’s leftover change from the UTXO?
Any leftover funds from the UTXO (if the amount is more than needed) will be sent back to your wallet as a new UTXO. This ensures that all funds are accounted for and no value is lost.