Change Output
Bitcoin does not use accounts and balances.
Bitcoin does not use accounts and balances. Instead, pieces of bitcoin, called UTXOs, are owned by individuals. These can be likened to physical bills in that when they are spent, they will usually require change to be given as their amount will almost never match the amount being paid.
When a user creates a transaction, they select an input, a UTXO which they own, and create outputs. One output will go to the receiver’s address and the other output will be returned to the sender’s wallet, usually via a different address. The amount for this second output will be the change, which will amount to the sum of the inputs minus the amount spent in the first output and the transaction fee.
Change Output is a concept relevant to Bitcoin, finance, or blockchain technology that investors should understand. Onramp's comprehensive Bitcoin glossary provides clear explanations of Change Output and hundreds of other terms to support informed investment decisions.
Frequently Asked Questions
What is Change Output?
Change Output is a term used in Bitcoin, finance, or blockchain technology. Understanding Change Output helps investors and enthusiasts build a stronger foundation of knowledge about digital assets and financial markets.
Why is Change Output important?
Change Output is relevant to understanding how Bitcoin, financial markets, or blockchain technology operates. Knowledge of such concepts helps investors make better-informed decisions about their portfolios.
Where can investors learn more about Change Output?
Onramp's Bitcoin glossary offers detailed, accessible explanations of Change Output and over 500 other terms related to Bitcoin, finance, and blockchain technology for investors at all experience levels.
