<p>In your example, there will be two chains of transactions as different transactions are spending the outputs of one transaction. Because there are two distinct transactions spending from those two outputs, there are now two transaction chains coming from one transaction. However this does not mean that the transaction chains won't converge or meet. Calling it a transaction chain or a tree isn't really accurate. It's actually a directed acyclic graph.</p>

CC BY-SA 3.0
2017-07-11T03:27:02.657Z
You're right. Makes sense!
schlingel
CC BY-SA 3.0
2017-07-10T17:07:27.917Z
2017-07-10T17:07:27.917Z
Ava Chow
<p>I try to understand how Bitcoin handles change or the combination of multiple transactions to provide sufficient funds for a given price.</p>

<p>Bitcoin transactions contain an array for the input transactions and an array for the UTXO outputs (vout).</p>

<p>For example: If I'm Frank and I send Charlie 1 BTC with an input transaction which holds 1.2 BTC, does that mean, that my next TX using the 0.2 BTC and Charlies TX using the 1 BTC form two new TX chains?</p>

<p><a href="https://i.sstatic.net/BafIg.jpg" rel="nofollow noreferrer"><img src="https://i.sstatic.net/BafIg.jpg" alt="enter image description here"></a></p>

<p>Or would I just reference the latest TX in the chain of transactions, containing both parts of the 1.2 BTC and sometimes the 0.2 BTC is referenced as VIN element and sometimes the 1.0 BTC?</p>

CC BY-SA 3.0
2017-07-10T05:54:49.973Z
Can you clarify what you mean by "same list"? What list are you talking about?
Ava Chow
CC BY-SA 3.0
2017-07-10T07:41:55.540Z
@AndrewChow I mean if there spawns a new chain of TXs, one referencing the 0.2 BTC, one referencing the 1.0 BTC or if both are referenced in the same chain of transactions.
schlingel
CC BY-SA 3.0
2017-07-11T04:10:10.523Z
Possible duplicate of [How does change work in a bitcoin transaction?](https://bitcoin.stackexchange.com/q/736/5406)
Murch
<transactions><raw-transaction><transaction-verification>
Transactions tree not list?
schlingel
# Transactions tree not list?

(Asked by: username_0 on 2017-07-10)

I try to understand how Bitcoin handles change or the combination of multiple transactions to provide sufficient funds for a given price.

Bitcoin transactions contain an array for the input transactions and an array for the UTXO outputs (vout).

For example: If I'm Frank and I send Charlie 1 BTC with an input transaction which holds 1.2 BTC, does that mean, that my next TX using the 0.2 BTC and Charlies TX using the 1 BTC form two new TX chains?

[![enter image description here](https://i.sstatic.net/BafIg.jpg)](https://i.sstatic.net/BafIg.jpg)

Or would I just reference the latest TX in the chain of transactions, containing both parts of the 1.2 BTC and sometimes the 0.2 BTC is referenced as VIN element and sometimes the 1.0 BTC?

**Tags:** transactions, raw-transaction, transaction-verification

> **Comments:**
> **username_1**: Can you clarify what you mean by "same list"? What list are you talking about?  
> **username_0**: @AndrewChow I mean if there spawns a new chain of TXs, one referencing the 0.2 BTC, one referencing the 1.0 BTC or if both are referenced in the same chain of transactions.  
> **username_2**: Possible duplicate of [How does change work in a bitcoin transaction?](https://bitcoin.stackexchange.com/q/736/5406)  

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## 1 answers

### Answer by username_1 on 2017-07-10. Score: 1 | Accepted answer

In your example, there will be two chains of transactions as different transactions are spending the outputs of one transaction. Because there are two distinct transactions spending from those two outputs, there are now two transaction chains coming from one transaction. However this does not mean that the transaction chains won't converge or meet. Calling it a transaction chain or a tree isn't really accurate. It's actually a directed acyclic graph.

> **Comments:**
> **username_0**: You're right. Makes sense!  

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