Change Address

A change address is a specific type of address generated by a wallet to receive the leftover funds from a transaction. In many blockchain protocols, when a user sends an amount less than their total balance, the remaining funds are sent back to a new address controlled by the sender.

Identifying these change addresses is critical for accurate wallet analytics and balance tracking. If an analyst fails to account for change addresses, they may incorrectly assume that funds have been sent to a different party.

This is a fundamental challenge in blockchain forensics and data interpretation. By correctly identifying change addresses, analysts can trace the true path of capital and avoid double-counting assets.

It is a key element of modern transaction parsing and on-chain intelligence.