When you send Bitcoin, you may notice that the original address in your wallet then appears empty, even though you only transferred part of your balance. No need to worry. Your remaining funds are not lost. Instead, they have been sent to Change address, which is a newly generated address controlled by your wallet.
how it works
Bitcoin follows UTXO (unspent transaction output)model. In this system, each transaction completely uses one or more previous outputs and then creates new outputs.
If the total amount entered is greater than the amount you want to send, your wallet will automatically do two things:
Send the requested amount to the recipient.
After deducting network fees, the remaining balance will be returned to the change address managed internally in your wallet.
For example, if your wallet contains 1 BTC and you send 0.3 BTC, the wallet will create a transaction:
spend all 1 BTC input
send 0.3 BTC to recipient
Returns approx. 0.7 BTC Subtract the fee to the newly generated change address
Why use change of address?
Change of address is primarily used to improve privacy.
They make it more difficult for outside observers to analyze the blockchain to determine which output is the actual payment and which output is the returned change. This helps reduce the chance of all transactions being easily linked together.
That said, changing addresses does not make Bitcoin completely anonymous. In some cases, such as when different address formats are involved, the change output may still be identifiable.
Change addresses were not included in Bitcoin's original 2008 release. They were introduced by Satoshi Nakamoto in 2010 as the protocol evolved to improve privacy and usability.
Main points
Change addresses are automatically created by your wallet, so there is no need to manage them manually.
They are part of the same wallet and are derived from your mnemonic phrase.
They increase privacy but do not provide complete anonymity.
What is the "New Address" feature and how to use it?
"new address"The function is UKey Application version 1.1.0 introduced in. It allows the wallet to generate a brand new and unused BTC address. Every time you receive funds, the wallet creates a new address that has never been used before and will not be associated with previous transactions.
By design, blockchain systems are not privacy-focused, and all transactions are publicly recorded. Both sender and receiver addresses can be viewed through a blockchain browser. If you continue to receive funds using the same address, The entire transaction history of that address may be exposed.
For increased privacy and security, when this feature is enabled, your wallet will automatically generate a new receiving address for each incoming BTC transaction. This newly generated address is called"New Address".
To enable this feature, go to Settings → Wallet and turn it on. It is enabled by default.
switch to BTC Mainnet After that, click receive, you will see"Address used"options.