The users' wallets manage these UTXOs and initiate transactions involving the UTXOs owned by the user. Every node maintains a record of all currently unspent transaction outputs (UTXOs), called the UTXO set. In technical terms, this is the chainstate, which is stored in the data directory of every node. When a new block is added to the chain, the chainstate is updated accordingly. This new block contains the list of latest transactions (including, of course, a record of spent UTXOs, and new ones created since the chainstate was last updated). Every node maintains an exact copy of the chainstate.
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