Bitcoin evolution: Why were separate addresses for change

As the world’s largest cryptocurrency in market capitalization, Bitcoin has undergone significant changes over the years. One of the key innovations that have been improved

For the strangers with this concept, let’s dive into the details.

Traditional approach: one address

When you create a wallet, it usually creates a bitcoin address. This only address is used to obtain funds from other users. When you send Bitcoin, all your funds are sent to this only address and the recipient’s change (all other funds) is also sent to the same address.

However, this approach has some restrictions:

• Security risks :

• Loss of Control

  

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Decision: Separate Change Addresses

Bitcoin developers have introduced separate change addresses (also knows “) ARY address.

When can the recipient then use this

How separate change addresses work

Here is an example of how it works:

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• The sender’s balance remains unchanged; Only the recipient’s balance is updated.

Benefits of Separate Addresses for Change

The introduction of individual change addresses has many advantages, including:

• Improved security : By separating funds from receiving and sending transactions,

• Increased management :

• Improved user experience

  : Separate Chang

The way we interact with this cryptocurrency. Bitcoin ecosystem.

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