UTXO stands for “Unspent Transaction Output.” It refers to the amount of cryptocurrency that remains after a transaction has taken place. The UTXO pool is essentially a collection of all unspent transaction outputs available in the network at any given time.When someone initiates a transaction, they use funds from their UTXO pool. Once the transaction is confirmed, the outputs become part of the transaction history and are no longer unspent. The remaining outputs in the pool can be used for future transactions.The UTXO model allows for greater privacy and efficiency, as each transaction creates new outputs. This keeps track of ownership without relying on account balances, making it easier to verify the validity of funds. Miners and users rely on the UTXO pool to ensure there are enough unspent outputs to fulfill transaction requests.Overall, the UTXO pool is a fundamental component of how certain cryptocurrencies maintain their ledger and facilitate transactions.