Any Bitcoin amount that we send is always sent to an address.
Receive paid messages through your free Earn.com profile
Any Bitcoin amount we receive is locked to the receiving address — which is usually associated with our wallet. Any time we spend Bitcoin, the amount we spend will always come from funds previously received and currently present in our wallet.
Addresses receive Bitcoin, but they do not send Bitcoin — Bitcoin is sent from a wallet. The amounts that go into our wallet are not jumbled like the coins in a physical wallet. Example You create a brand new wallet and, in time, it receives three amounts of 0.
The wallet reports a balance of 3. The three amounts in the example above are called the outputs of their originating transactions. Bitcoin wallets always keep outputs separate and distinct. Definition An output is an amount that was sent via a standard transaction to a Bitcoin address, along with a set of rules to unlock the output amount.
A standard transaction output can be unlocked with the private key associated with the receiving address. For now, we are concerned with the output amount only. As we have seen, your wallet does not select 15 mil satoshi 0. So, it chooses for various reasons that are not important now the 0. The wallet will unlock the 0.
Get paid to learn about new crypto projects
The spend transaction your wallet creates will send 0. So, now, a virtual peek inside your wallet reveals the following: Behind the scenes, different wallet clients apply different logic rules when selecting UTXOs as inputs to new transactions. A sane wallet policy is to use older UTXOs first, wherever possible, but implementations differ. The manner in which UTXOs are selected is not of concern to us right now, since the objective has been emphasis of the point that amounts received to our wallets remain separate and distinct.
Instead, received amounts UTXOs are used individually or in combination at the moment we spend Bitcoin.