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Motley Fool. Premier Inc. Morgan Virtual Healthcare Conference on January 12, In this case, the client generates a new Bitcoin address, and sends the difference back to this address. This is known as change. What is the min amount you can pay? Now in fiat nobody except the central bank can make new bills so bills are in fixed denominations and thus your fiat transaction may look something like the following.
We do it everyday so it becomes instinctive but if you break it down that is what is happening. In that case your transaction may look like this:.
That is exactly how bitcoin works. Except instead of bills we call the elements inputs and outputs. When you "spend" bitcoins create a transaction you must use the entire value of an unspent output of a prior transaction and make it the input for a new transaction. Your wallet hides this somewhat by continually looking for unspent outputs and adding up their total value.
Take the case of the transaction 0a1c0b1ec0ac55a45bdaf2ef5bccddffef87 , a The client can't spend just The entire The Those unspent outputs can now become inputs for future transactions.