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In eth-lightwallet from consensys there is a function generateNewAddress.

What is the purpose of having multiple addresses for the same account?

I can think of a few usages:

  • accounting solution: 1 address per general ledger entry
  • as a convenience to split funds by purpose
  • to easily cap spending for something:
    • use an address to participate in a contract and there is an automatic upper limit to spending

is this the thought behind addresses or am I missing something?

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There is also the anonymization aspect. If all of your spending is done from a single address, you eventually start to build up an identity associated with that address.

Similar thinking was used for Bitcoin's UTXO model, where every transaction should spend the address's entire balance, and send the change to a fresh address. There is no standard so far for HD wallets in Ethereum, but someone could relatively easily come up with one.

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