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Topic
Board Development & Technical Discussion
Topic OP
How are spend and change addresses derived?
by
pomme7000
on 13/08/2024, 12:16:40 UTC
Hi all. I am preparing a general talk on bitcoin and would like some help on a basic question.

Suppose I have 10 bitcoin and I want to send 1 bitcoin to you. My understanding is that this transaction would create three entries in the blockchain as follows:

Entry 1: Spends my 10 bitcoin. I will call this my "spend" address.
Entry 2: Sends 1 bitcoin to your recipient address.
Entry 3: Returns 9 bitcoin to me. I will call this my "change" address.

I assume that both my spend address and my change address are simply public keys that are derived from my private key. Is this correct?