From 599bd98151f16a7895832c14a864dc5588af5234 Mon Sep 17 00:00:00 2001 From: Shannon Appelcline Date: Thu, 2 Aug 2018 15:43:42 -0700 Subject: [PATCH] Clarification of UTXO explanation Thanks to @jandrieu for suggestion. --- 04_2_Creating_a_Raw_Transaction.md | 6 +++--- 1 file changed, 3 insertions(+), 3 deletions(-) diff --git a/04_2_Creating_a_Raw_Transaction.md b/04_2_Creating_a_Raw_Transaction.md index abfee35..66c721e 100644 --- a/04_2_Creating_a_Raw_Transaction.md +++ b/04_2_Creating_a_Raw_Transaction.md @@ -8,11 +8,11 @@ You're now ready to create Bitcoin raw transactions. This allows you to send mon Before you dive into actually creating raw transactions, you should make sure you understand how a Bitcoin transaction works. It's all about the UTXOs. -_What is a UTXO?_ When you receive cash in your Bitcoin wallet, it appears as an individual transaction. Each of these transactions is called a Unspent Transaction Output (UTXO). It doesn't matter if multiple blobs of money came into the same address or to multiple addresses: each UTXO (incoming transaction) remains distinct in your wallet. +_What is a UTXO?_ When you receive cash in your Bitcoin wallet, it appears as an individual transaction. Each of these transactions is called a Unspent Transaction Output (UTXO). It doesn't matter if various payments were made to the same address or to multiple addresses: each incoming transaction remains distinct in your wallet as a UTXO. -When you create a new outgoing transaction, you gather together one or more UTXOs, each of which represents a blob of money that you received. Together their amount must equal what you want to spend _or more_. You use these as inputs into the new transaction. Then, you generate one or more outputs, which give the money represented by the inputs to one or more people. This creates new UTXOs for the recipients, which may then use _those_ to fund future transactions. +When you create a new outgoing transaction, you gather together one or more UTXOs, each of which represents a blob of money that you received. You use these as inputs for a new transaction. Together their amount must equal what you want to spend _or more_. Then, you generate one or more outputs, which give the money represented by the inputs to one or more people. This creates new UTXOs for the recipients, which may then use _those_ to fund future transactions. -Here's the trick: _all of the UTXOs that you gather are spent in full!_ That means that if you want to send just part of the money in a UTXO to someone else, then you also have to generate an additional output that sends the rest back to you! For now, we won't worry about that, but the creation of a change address will be what turns the theory of this section until the actual use of the next subsection. +Here's the trick: _all of the UTXOs that you gather are spent in full!_ That means that if you want to send just part of the money in a UTXO to someone else, then you also have to generate an additional output that sends the rest back to you! For now, we won't worry about that, but the use of a change address will be vital when moving on from the theory of this chapter to more practical transactions. ## List Your Unspent Transactions