# 8.1 UTXO-Based Model

PTERI uses Litecoin’s **UTXO (Unspent Transaction Output)** model as the foundation for payments.

In a UTXO system:

* Value is not stored as balances
* Each transaction consumes specific outputs
* Each output can be independently verified

This provides strong guarantees:

* Clear provenance of funds
* Deterministic verification
* No hidden state or account ambiguity
* Easier auditing and reconciliation

> A UTXO either exists or it does not.\
> There is no intermediate or uncertain state.

This makes the model ideal for:

* Payments
* Automation
* Machine verification
* Infrastructure-grade systems

***

<figure><img src="/files/XM9ZhyBizcRsm3r1GNss" alt=""><figcaption></figcaption></figure>


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