use one of Bitcoins least understood features. Many cash transactions generate change. This is known as change. After receiving his merchandise, Bob decided to check his balance with. MultiBit, working as designed, used the imported paper wallet address to receive.9 BTC in change from Franks Overstock payment. Deterministic Address Pool Wallets use a pool of deterministically-generated addresses to receive payments and change. When you receive a payment, you accept one or more of these digital coins. Change is returned to a newly-created change address. To resolve this dilemma, Alice uses a transaction that splits her payment, a feature fully supported by Bitcoin.
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After paying Overstock, he exited the program. On his last transaction, Daves change was sent to an address generated on the desktop, but unknown to the wallet. You open your wallet (fiat wallet) and inside there is a single 20 bill. Wallets can adopt new change-handling behavior depending on user settings and other state. Understanding the close connection between Bitcoin and physical cash is the key to understanding change addresses. Alice buys Bobs computer for.05 BTC. On the 100th spending transaction, Bitcoin-Qt moved Alices change (which happend to be her entire balance) into an address not in the backup.
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