Change Output Heuristics

Change output heuristics are specific logic rules used to guess which address in a transaction is receiving the change. These rules often look at the address type, the amount, and the history of the addresses involved.

For example, a common heuristic is to assume that if one output address is new and the other has been used before, the new address is the change address. While these rules are not foolproof, they are highly reliable in many contexts and are used extensively in chain analysis software.

By accurately identifying change outputs, investigators can filter out internal movements and focus on external payments. This significantly reduces the noise in transaction graphs and improves the accuracy of fund flow visualization.