So, how is the balance of an individual address managed ?
Lets say two accounts have an address each, i send 100 to address 1, then move the funds between the two accounts, will bitcoin actually use the first address for sending when sending coins from the second account ?
Lets say two accounts have an address each, i send 100 to address 1, then move the funds between the two accounts, will bitcoin actually use the first address for sending when sending coins from the second account ?
Accounts do not affect the previous-transaction-selection algorithm at all; if you sendfrom FOO, bitcoin doesn't make any effort to only use coins that were received by FOO.
Think of your wallet as being a big pool of coins. Coins are not stamped with account names when they go in, instead, there's a little man with a green visor making entries in a ledger.
Each receiving address is a pipe that dumps coins into the pool, and the little man knows which pipes are assigned to each account.
Every send the little man grabs his shovel and picks a bunch of coins randomly from the pool. Then debits an account.
And for moves, the little man doesn't have to touch the coins in the pool at all, he just adjusts his ledger.