Crypto Terms:
Letter C
What is Change?
Meaning:
Change -
in UTXO models, the amount of cryptocurrency that is sent back to the owner after using unspent outputs to initiate the transaction process.
Let's find out Change meaning, definition in crypto, what is Change, and all other detailed facts.
Change is a concept related to the unspent transaction outputs (UTXO) cryptocurrency model. Based on this model, transactions with various cryptocurrencies, including Bitcoin (BTC), consist of inputs and outputs.
If a person wishes to send a certain amount of cryptocurrency to another user, they cannot simply send that amount. Instead, they feed inputs to the network. The input determines where the cryptocurrency is being sent from. The network that processes the transaction produces outputs. These outputs can be used for new transactions as inputs.
During a transaction, the user can only send their cryptocurrency in a whole output. The remaining crypto is sent back to the wallet as change. The overall balance of a crypto address is made up of unspent outputs from prior transactions.
For example, user A has a Bitcoin address with unspent outputs of 20 BTC and wishes to transfer 5 BTC to user B. User A has to send all 20 BTC as the new transaction input to the network. The network then destroys the input and instead creates three separate outputs that total to the amount of the initial input:
- An output of 5 BTC that will be sent to user B;
- The so-called miner fee as payment for processing the transaction
- The remaining 15 BTC minus the miner fee to return to user A’s wallet.
The latter input of 15 BTC minus miner fee is the change. It can then be used as an input in the future if the user wishes to proceed with new transactions.
fiat currency:<\/p>\n<ul>\n<li><strong>The input will be fiat money.<\/strong><\/li>\n<li>The output will be 1ETH.<\/li>\n<\/ul>\n<p>In addition, any <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin you’ve been sent to your Bitcoin wallet can be referred to as “bills” that should be spent. To put things into perspective, let’s say you are out on a date in an expensive restaurant and you need to pay 20 BTC for your meal. You have 50 BTC in your wallet, so you’ll get <strong>30 BTC<\/strong> in change. <\/p>\n<p>The main factor is that the change will be sent to another address that is managed by your Bitcoin <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-wallet/">wallet - a change address.<\/p>\n<p>Even though it might seem that receiving a change to the same address is less confusing, different addresses are important for users' privacy. As we all know, the blockchain can be seen by anyone, this feature helps to give some level of anonymity to the user.<\/p>\n<p>It is possible to view your changed address as well as how much of the payments were transferred through it. The blockchain determines how much a sender is bringing in and how much output is required.<\/p>\n<p>The transaction will crash if the input is inadequate. If the input exceeds the specified output, the blockchain will transfer the leftover money to a new address. The money will be restored to the sender's wallet moments later.<\/p>\n<p>Inputs are not always calculated to the exact amount required by the transaction. In this situation, the sender's address sends extra money than the set price, <strong>which is then held in a change address and refunded to the sender's digital wallet.<\/strong><\/p>\n<p>Change address is a critical component of the cryptocurrency world. One of the reasons is it ensures that interactions across wallets are fair. It would be impossible to transfer exact numbers across wallets without the use of change addresses. <\/p>\n<p>Furthermore, people often are unaware that change addresses exist. While this procedure occurs more frequently than we may believe, it is a side computation conducted by the blockchain itself.<\/p>","definition":"occurs when a user uses an input that is worth more than the transaction cost, the extra funds are sent back to the users as change through a newly generated address.","status":"published","meta_title":"What is Change Address? Definition & Meaning | Crypto Wiki","meta_description":"Change Address meaning: Change Address - occurs when a user uses an input that is worth more than the transaction cost, the extra funds are sent back to the users as change through a newly generated address.","meta_keywords":null}"
:prev-section="{"id":932,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Fork_(blockchain)#Cryptocurrency_splits","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:01.000000Z","updated_at":"2023-12-26T17:04:32.000000Z","slug":"what-is-chain-split","title":"What is Chain Split?","section":"C","keyword":"Chain Split","content":"<p><strong>Chain splits are essentially a split in the blockchain that will result in a few versions of the initial chain.<\/strong><\/p>\n<p><a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-fork-software/">Software forks<\/strong><\/a> arise when developers clone the codebase of an actual prototype and start their own separate development on top of it. As an outcome, one or more different projects are separated from the initial, \"parent\" project.<\/p>\n<p>These splits happen for a few different reasons. One of which is that occasionally, developers insist that a cryptocurrency is decent in most aspects, but could benefit from a few changes. For instance, <a href=https://www.bitdegree.org/"//crypto//buy-litecoin-ltc/">Litecoin (LTC)<\/strong><\/a> split from <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin (BTC)<\/strong><\/a> to enable quicker block generation time, increase the total number of coins, and change the hashing platform.<\/p>\n<p><a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//dogecoin/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong><strong>Dogecoin (DOGE)<\/strong><\/strong><\/a>, on the other hand, is simply a joke. It is a fork of Litecoin that got the idea from an internet meme and managed to reach a market capitalization of approximately $2 billion.<\/p>\n<p>Another factor that might cause a chain split is moral dissimilarities. For example, Bitcoin Cash was separated from Bitcoin due to divergent views about how to grow the coin for a broader customer base.<\/p>\n<p>Because of the debate over whether cryptocurrency developers should be able to alter data stored on the blockchain in an effort to return lost coins to their previous owners, Ethereum Classic (split from <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum) was formed.<\/p>\n<p>A big amount of cryptocurrencies were launched <strong>as open-source projects<\/strong>, specifically in the early years. Because of this, it is usually overly uncomplicated to fork a project, even for those developers who seem to lack the skills to develop their own coin. A few of the most popular cryptocurrencies today are forks or forks of several parent projects.<\/p>","definition":"Chain splits are cryptocurrency forks that relate to the separation of a single initial coin into many separately managed initiatives.","status":"published","meta_title":"What is Chain Split? Definition & Meaning | Crypto Wiki","meta_description":"Chain Split meaning: Chain Split - Chain splits are cryptocurrency forks that relate to the separation of a single initial coin into many separately managed initiatives.","meta_keywords":null}"
:model="{"id":159,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Unspent_transaction_output","level":"easy","author_id":1,"created_at":"2023-06-19T06:58:59.000000Z","updated_at":"2023-12-26T17:06:16.000000Z","slug":"what-is-change","title":"What is Change?","section":"C","keyword":"Change","content":"<p><strong>Change<\/strong> is a concept related to the unspent transaction outputs (UTXO) cryptocurrency model. Based on this model, transactions with various cryptocurrencies, including <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin (BTC)<\/strong><\/a>, consist of inputs and <strong>outputs<\/strong>.<\/p>\n<p>If a person wishes to send a certain amount of cryptocurrency to another user, they cannot simply send that amount. Instead, they feed inputs to the network. The input determines where the cryptocurrency is being sent from. The network that processes the transaction produces outputs. These outputs can be used for new transactions as inputs.<\/p>\n<p>During a transaction, the user can only send their cryptocurrency in a whole output. The remaining crypto is sent back to the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-wallet/">wallet as change. The overall balance of a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-address/">crypto address<\/strong><\/a> is made up of unspent outputs from prior transactions.<\/p>\n<p>For example, user A has a Bitcoin address with unspent outputs of 20 BTC and wishes to transfer 5 BTC to user B. User A has to send all 20 BTC as the new transaction input to the network. The network then destroys the input and instead creates three separate outputs that total to the amount of the initial input:<\/p>\n<ul>\n<li>An output of 5 BTC that will be sent to user B;<\/li>\n<li>The so-called miner fee as payment for processing the transaction<\/li>\n<li><strong>The remaining 15 BTC minus the miner fee to return to user A’s wallet.<\/strong><\/li>\n<\/ul>\n<p>The latter input of 15 BTC minus miner fee is the change. It can then be used as an input in the future if the user wishes to proceed with new transactions.<\/p>","definition":"in UTXO models, the amount of cryptocurrency that is sent back to the owner after using unspent outputs to initiate the transaction process.","status":"published","meta_title":"What is Change? Definition & Meaning | Crypto Wiki","meta_description":"Change meaning: Change - in UTXO models, the amount of cryptocurrency that is sent back to the owner after using unspent outputs to initiate the transaction process.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}"
:chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? The Pros & Cons","status":"published","modified_content":null},{"chapter_id":2,"order":4,"slug":"coin-vs-token","title":"Coin VS Token: How Do They Differ?","status":"published","modified_content":null},{"chapter_id":2,"order":5,"slug":"what-are-stablecoins","title":"What are Stablecoins, Altcoins & Wrapped Coins?","status":"published","modified_content":null},{"chapter_id":2,"order":6,"slug":"what-is-a-bitcoin","title":"Bitcoin: the Pioneer of the Crypto World","status":"published","modified_content":null},{"chapter_id":2,"order":7,"slug":"what-is-ethereum","title":"The Ultimate Blockchain for dApp Creation: Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":8,"slug":"what-is-cardano-in-crypto","title":"What is Cardano and What is It Used For?","status":"published","modified_content":null},{"chapter_id":2,"order":9,"slug":"what-is-shiba-inu-coin","title":"Shiba Inu: the Dogecoin 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Contracts?","status":"published","modified_content":null},{"chapter_id":6,"order":7,"slug":"what-is-a-dao-in-crypto","title":"The Notion of a Decentralized Autonomous Ogranization (DAO)","status":"published","modified_content":null},{"chapter_id":6,"order":8,"slug":"what-is-staking-in-crypto","title":"What is the Goal of Staking Crypto Assets?","status":"published","modified_content":null},{"chapter_id":6,"order":9,"slug":"what-is-liquidity-pool-in-crypto","title":"What is a Liquidity Pool and How Does It Work?","status":"published","modified_content":null},{"chapter_id":6,"order":10,"slug":"what-is-automated-market-maker","title":"Automated Market Maker: the Cornerstone of the Decentralized Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":6,"order":11,"slug":"what-is-yield-farming-in-crypto","title":"The Main Yield Farming 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current-chapter="C"
current-section="what-is-change">
