In one of the videos, our great sweedish bitcoin minister states that if you have sent like .3 and .7 bit coin to an account, subsequent transactions need to be divided up between those 2 transactions in such a way as to make the numbers add up per say. For example, if i had the .3 and .7 sent to a wallet previously and now want to send .8 to another account, it will basically have tomake 2 seperate transactions one for the .7 which exists in whole then for .1 taken off the .3 which now leaves .2 remaining… is this basically correct? Im just trying to wrap my head around the math of needing to do transactions based on previous transactions than on the account total as a whole. Who can elaborate and enlighten? Sweedish or not!
Hi @crypticJargy, hope you are well.
I have moved your topic to the proper category, so the community can reach your questions easily.
Here is an example that I use time to time to explain how the UTXO model works on bitcoin:
Even the fact of sending funds back to yourself, means an output with a input, so you can send 1 BTC (1 input) divided for 8 persons, 0.1 BTC per person = 0.8 BTC for persons (8 outputs).
The rest 0.2 BTC will be automatically sent to another address that you control from your private keys, so it counts has another output.
Inputs must be spent completely, there is no way to spent like 80% of an input (0.8 BTC), this is why if you spend that 80% to persons, the 20% goes back to yourself in another address (create a new input with the rest of the funds 0.2 BTC).
If you have any more questions, please let us know so we can help you!