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. 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His family moved to Canada in the late 1980s as his father, a university instructor, was exiled after being labeled a &ldquo;pro-bourgeois intellect&rdquo;. CZ received his degree in computer science from McGill University in Montreal, Canada.</p>\n<p>After graduating, Zhao worked for the Tokyo Stock Exchange as a software developer. He later developed software for <strong>Bloomberg Tradebook</strong>. In 2005, Zhao founded Fusion Systems in Shanghai, which was known for developing high-frequency trading systems for blockers.</p>\n<p>From 2013 onwards, CZ joined various cryptocurrency projects, such as Blockchain.info, and was CTO of cryptocurrency exchange platform OKCoin. In 2017, Zhao left OKCoin and proceeded to found his own cryptocurrency exchange platform <strong>Binance</strong>. During the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-initial-coin-offering-ico/">initial coin offering (ICO)</strong></a>, Zhao raised $15 million.</p>\n<p>Binance became the biggest crypto exchange service based on trading volume in April 2018, fewer than 180 days from the initial launch. In early 2019, the daily trading volume reached $500 million. As of 2022, Binance remains the largest cryptocurrency exchange in the world in terms of the daily trading volume.</p>","level":"easy","meta_title":"Who is Changpeng Zhao (CZ)? 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All active copies of the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-distributed-ledger/">distributed ledger</strong></strong></a> are considered to be nodes that are responsible for continuously updating their blockchain copy. Nodes are used to verify transactions on the blockchain. Chain reorganization ensures that all node operators have the exact copy of the distributed ledger.</p>\n<p>Blockchains are structured as long strings of blocks bound together in a distributed ledger. The blocks hold data about transactions processed on the chain. With each new transaction, the string of blocks becomes longer. Thus, sometimes the process of chain reorganization is required.</p>\n<p>Large-scale blockchains like <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-bitcoin-btc/">Bitcoin or <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-ethereum-eth/">Ethereum may require chain reorganization as nodes are likely to build new blocks at the same time and place them in the same position due to the large data traffic. In this scenario, as the two nodes update their ledger copies, the one that built a shorter follow-up chain initiates chain reorganization.</p>\n<p>Chain reorganization can be considered to be the central process ensuring that the blockchain is working in order. Without the process of chain reorganization, it would be impossible to maintain a unified ledger between all blocks in the blockchain.</p>\n<p>According to some analysts, chain reorganization may have some downsides, as the shifting of blocks could <strong>lead to some transactions getting rejected</strong>. While it may happen if the transaction is recorded in a rejected <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-orphaned-block-orphan/">orphan block</strong></a>, it is a very rare occurrence. Typically, the data contained in the orphan block and the record on the last block on the new longest chain match.</p>\n<p>Chain reorganization is a near-instantaneous process, as it only takes a few seconds and does not affect the processing speed of other transactions taking place. This process ensures that all transaction information in the ledger is the exact copy across all nodes in the network. All recorded transactions are therefore verified and confirmed as valid.</p>","level":"medium","meta_title":"What is Chain Reorganization? Definition & Meaning | Crypto Wiki","meta_description":"Chain Reorganization meaning: Chain Reorganization - a blockchain process when node operators replace old blocks and adopt new ones to create longer data chains.","meta_keywords":null,"language":"en","created_at":"2022-02-22T11:43:42.000000Z","updated_at":"2022-11-15T06:17:45.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-chain-reorganization"},"currentChapter":"C","currentSection":"what-is-change","chapterTitle":"C","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-is-change","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">
Handbook Cover Page
Crypto Terms: Letter C

What is Change?

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.
Easy
1 minute

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.
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