<p>In Bitcoin terms, "redeem" means to claim an <a href="https://bitcoin.org/en/glossary/unspent-transaction-output" rel="noreferrer">unspent transaction output</a> (UTXO) by listing it as an input of a new transaction.</p>

<p>All a Bitcoin transaction really does is claim ownership of one or more UTXOs, and combine their value into one or more <em>new</em> UTXOs.  To do this, it must prove ownership of the UTXOs being used as inputs.  Each UTXO has a script that defines a condition that must be met in order to use it as an input (scriptPubKey or <em>encumbrance script</em>).  To redeem, you must supply a corresponding script that meets that condition (scriptSig or <em>redeem script</em>).</p>

<p>The website you refer to is an improvement proposal (that has already been implemented) where instead of specifying a script in a UTXO, you specify a hash of a script.  This means that a transaction that claims UTXO needs to specify both the script that meets the condition, <em>and</em> the original script from which the hash was produced.</p>

CC BY-SA 3.0
2017-03-28T20:20:13.150Z
2017-03-28T20:20:13.150Z
Jestin
<p>In <a href="https://github.com/bitcoin/bips/blob/master/bip-0016.mediawiki" rel="nofollow noreferrer">this</a> website, it says "The purpose of pay-to-script-hash is to move the responsibility for supplying the conditions to redeem a transaction from the sender of the funds to the redeemer."</p>

<p>I looked all over the internet, and could find no clear explanation of what redeem is in the context of bitcoin. Is it the receiver of the bitcoin?</p>

<terminology>
What exactly does redeem in the context of bitcon mean?
Aqqqq
# What exactly does redeem in the context of bitcon mean?

(Asked by: username_0 on 2017-03-28)

In [this](https://github.com/bitcoin/bips/blob/master/bip-0016.mediawiki) website, it says "The purpose of pay-to-script-hash is to move the responsibility for supplying the conditions to redeem a transaction from the sender of the funds to the redeemer."

I looked all over the internet, and could find no clear explanation of what redeem is in the context of bitcoin. Is it the receiver of the bitcoin?

**Tags:** terminology


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## 1 answers

### Answer by username_1 on 2017-03-28. Score: 5 | Accepted answer

In Bitcoin terms, "redeem" means to claim an [unspent transaction output](https://bitcoin.org/en/glossary/unspent-transaction-output) (UTXO) by listing it as an input of a new transaction.

All a Bitcoin transaction really does is claim ownership of one or more UTXOs, and combine their value into one or more *new* UTXOs. To do this, it must prove ownership of the UTXOs being used as inputs. Each UTXO has a script that defines a condition that must be met in order to use it as an input (scriptPubKey or *encumbrance script*). To redeem, you must supply a corresponding script that meets that condition (scriptSig or *redeem script*).

The website you refer to is an improvement proposal (that has already been implemented) where instead of specifying a script in a UTXO, you specify a hash of a script. This means that a transaction that claims UTXO needs to specify both the script that meets the condition, *and* the original script from which the hash was produced.


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