I am new to understanding Bitcoin, but just read this:
If an UTXO is larger than the desired value of a transaction, it must still be consumed in its entirety and change must be generated in the transaction. In other words, if you have an UTXO worth 20 bitcoin and want to pay only 1 bitcoin, your transaction must consume the entire 20-bitcoin UTXO and produce two outputs: one paying 1 bitcoin to your desired recipient and another paying 19 bitcoin in change back to your wallet. As a result of the indivisible nature of transaction outputs, most bitcoin transactions will have to generate change.
Not knowing much, I don't understand why you can't just divide the bitcoin arbitrarily like an integer. I saw these:
- Why Bitcoin uses UTXO model?
- If bitcoin is indivisible, where does change come from? (and the gold coin stuff)
Wondering if this decision was made for some significant reason or if it's just "its like that because it's like that" sort of thing.