In sparrow wallet in addresses. Receive Addresses are obvious but what are Change Addresses?
Discussion
Those are the address for receiving the change left after a send transaction happens.
Looks into UTXOs to understand more.
Learning UTXOs can only help.
#[4] Wicked Smart Bitcoiner and Southern Bitcoiner both have good videos about this on YouTube
In a basic transaction you will have 1 input and then 3 outputs. 1 would be the address you are paying then the mining fee and then the change output can be the same address as input or sometimes wallets give a new address for better privacy.
Actually the change is not an output. There is no explicit change in a bitcoin transaction. It is the implied difference between the inputs and outputs that the block-solving miner gets to keep.
When you spend a sat on the blockchain you actually spend ALL of that sat’s UTXO. So, if you had 1 BTC in a UTXO and you only have to pay a sat, 0.99999999 will be send to yourself but with different UTXO