Post
Topic
Board Wallet software
Re: Consolidating UTXOs in wallets.
by
Pmalek
on 13/10/2023, 17:46:30 UTC
Yes, but still when an average user will send any amount of bitcoin to someone, electrum by default will create two outputs, one to send the amount that you send to the other address and the other output to send the entire balance of the wallet to the change address. So this will automatically combine all of your UTXOs to the change address.
Don't confuse the entire balance of the wallet to the balance of the addresses whose UTXOs are used in a new transaction. The change from the address/addresses used for sending a transaction will be consolidated into one new address, but the rest of the coins in the wallet remain where they are and would still need to be consolidated later if your ultimate goal is to merge them all together.

Let's say your wallet has 5 funded addresses.
Address 1
Address 2
Address 3
Address 4
Address 5

You use the coins from Addresses 1 and 2 for a transaction. Any leftover chance will go to a new change address. The coins in addresses 3, 4, and 5 remain where they are.