What is unfair witness information and unspent transaction output? […] I am puzzled what they imply through UTXO

Arbitrary

Arbitrary method what you assume it does – “the knowledge may also be the rest you select”. It must be packaged in an appropriate method and there are limits on measurement. A part of a Bitcoin transaction enter is an unlocking script, those scripts are created through the transaction writer who’s spending cash. There are quite a lot of techniques they are able to insert further information into scripts that haven’t any impact on script execution.

Witness Information

An development to Bitcoin referred to as Segwit allowed some portions of transactions to be separated (segregated) into a brand new phase referred to as a transaction witness. This allowed the block measurement in Bitcoin to be greater with out affecting older device and ready for different enhancements. The witness information can come with scripts and the ones scripts can comprise arbitrary information selected through the transaction writer. This comprises information that has no impact at the Bitcoin transaction itself, as opposed to expanding its measurement. Some other people use this to embed international information into the Bitcoin blockchain. That is arguable.

UTXO

Bitcoin transactions have inputs and outputs, inputs are references to outputs of previous transactions. Inputs are thus spending older outputs. An unspent transaction output is abbreviated UTXO.

Those UTXOs constitute gadgets of spendable cash, like cash. While you spend a UTXO it turns into a spent TXO and is not an unspent TXO. So each and every transaction successfully destroys the UTXOs in its inputs and creates new UTXOs in its outputs. The overall price of outputs can’t exceed general price of inputs. Bitcoin nodes stay monitor of the set of all UTXOs in order that they cant be spent two times.