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Author Topic: Difference between Receiving and Change panel in Electrum Addresses menu.  (Read 44 times)
10_sjdovn_10 (OP)
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February 03, 2021, 11:50:16 AM
 #1

In Electrum addresses detail, some addresses are highlighted in green (Receive) and some are highlighted in yellow (Change).
I don't understand differences :/
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jackg
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February 03, 2021, 11:52:59 AM
 #2

Your change addresses are used to send any change from inputs you have.

If you spend £7.50 and hand over a £10 note, your £2.50 is change and this is the principle in use here.

You can receive funds to change addresses like your normal receiving addresses but it may be beneficial for privacy if you don't (in some circumstances).
ranochigo
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February 03, 2021, 11:56:28 AM
 #3

Receiving addresses are always generated for you when you go to the Receive tab and generate a new request. The addresses are only picked from those which are labelled as such.

When you're sending a transaction, the change would be the Total amount in the inputs - Total amount in the outputs - Total fees. The remainder (change) are sent to the one of the addresses which are labelled as change. The main difference between how Electrum handles both kinds of address lies with the generation; the addresses in the change address are generated from a slightly different derivation path from the receiving address but this is transparent to the user.

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NotATether
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February 03, 2021, 12:01:38 PM
 #4

Inside an Electrum wallet you have a bunch of coins that represent the bitcoins that you can use to make transactions to other addresses. You can see these coins from the hidden Coins tab, which can be shown by going to "View" and selecting "Show Coins".

Electrum also creates a set of addresses that it will pick from to use as the receiving address in the "Send" tab. Once you make a transaction to somebody else from Electrum, it will take one of the coins in the coins tab that are large enough, and it will "split" it into two coins: one of which is the amount that is sent to the receiving address, and the remainder is made into a smaller coin that is sent to one of the change addresses.

Also it is possible to use multiple coins to make a single large payment if the amount sent it bigger than all the coins you have, but the important part is one coin is always sent back to one of the change addresses.

Electrum picks a change address that hasn't been used before to receive the remaining small coin.

It will generate more receiving addresses if you use an empty receiving address to receive bitcoin to them. Same thing for change addresses; it generates another each time one address designated as a change address is used for the first time.

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February 03, 2021, 12:03:17 PM
 #5

If you create a 2FA wallet, you will also see a blue address in the same menu. That one belongs to Trustedcoin, who charge you for using their 2FA services. But if you are not using 2FA wallets, no need to bother yourself with those. It is just FYI. 

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ranochigo
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February 03, 2021, 12:08:21 PM
 #6

Electrum picks a change address that hasn't been used before to receive the remaining small coin. It will generate more change addresses if the ones with no history of transactions are almost finished.

It will also generate more receiving addresses if you use an empty receiving address to receive bitcoin to them.
For receiving addresses, you'll always see at least 10 un-used change address while for receiving address, you'll always see at least 20.

If for some reason, you decide to skip the addresses' order and not use the address in the chronological order, then there'll also be at least X unused addresses after that specific address, depending on whether it's change or receiving.

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