I'm new to bitcoin in general and coinbase.com in particular. Can somebody explain what happens when I order a payment (in bitcoins) from their web interface?
Say that my acount owns 1 BTC. I create an address
AAA to pay 0.1 BTC for my loaf of bread to my baker's address
BBB. I order the transfer from coinbase.com web interface, and looking at blockchain.info, I see the following (amounts rounded):
// webUI says I own 1.0 BTC AAA pays 0.1032 --> X = 0.1 BTC to BBB (my baker) // what I wanted --> Y = 0.0002 BTC as network fees // fine with that --> Z = 0.003 BTC to CCC // what is that ? // after payment, webUI says I own 0.8998 (= 1.0 - X - Y) // The mysterious Z = 0.003 BTC have *not* been removed.
But what is that 0.003 BTC transfer to an address I don't know
CCC? Apparently I own this address, or at least coinbase.com does on my behalf. Is it a standard way of processing I'm not aware of? Is it a safety feature managed by coinbase to authenticate the transaction?
Obviously there are a lot of informations on this reddit, but it's too technical for me.
AAAat the time of transacting, rather when you create a transaction, you use the funds that you previously received to