Optimizing UTXO’s processing using a hybrid data structure

Blockchain technology is a distributed ledger system providing secure, transparent, decentralized cryptocurrency transactions. Its underlying structure includes wallets and the Unspent Transaction Output (UTXO), which facilitates transactions and maintains transaction integrity. A blockchain wallet is a software program that stores and manages cryptocurrencies, allowing users to send and receive digital currency and monitor their balance. The UTXO set tracks unspent outputs, particularly in the Bitcoin network, ensuring accurate and secure accounting of available balances. This paper examines how well a hybrid data structure performs when processing wallet values in a UTXO set. The hybrid data structure stores the wallet’s addresses in a hash table and the UTXO in a minimum heap tree rather than a list. At first, we assume that the values in the list should always be sorted and appear in ascending order. Then, we employ a list with unsorted values. The wallet addresses are invariably assigned to a hash table. The “instruction count” approach counts the number of statements that can be executed or what we refer to as a “single operation” to measure performance.