tackle reuse – How does reusing addresses damage my privateness?

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The extra transactions tied to a specific tackle, the much less the privateness. Therefore a necessity for people to make use of Hierarchical Deterministic (HD) Wallets that generate a distinct tackle for receiving every transaction..

Take a look at issue issue and word 14TYdpodQQDKVgvUUcpaMzjJwhQ4KYsipa. Then take a look at 14TYdpodQQDKVgvUUcpaMzjJwhQ4KYsipa. With the instance, it seems like Pieter Wuille (aka Sipa) has obtained nearly 10 BTC, however presently has 0.1 BTC in his pockets – in all probability not price a mugger’s time. Be aware that each transaction is public data, contains dates and quantities spent.

Here’s a quick checklist of applied sciences which can be largely complementary for enhancing privateness:

  1. Hierarchical Deterministic (HD) Wallets – improves privateness by way of obfuscation
  2. TOR or I2P – reusable community and utility anonymity, confidentiality applied sciences
  3. CoinJoin, CoinMarket, CoinShuffle, CoinSwap – payer/sender anonymity
  4. Ring Signatures – payer/sender anonymity
  5. Stealth Transactions – payee/recipient confidentiality
  6. BIP 47
  7. Confidential Transactions – spender & recipient confidentiality
  8. ZKCP (Zero Data Contingent Fee) – trusting transactions with out third events
  9. ZK-SNARK (Zero Data Succinct Non-Interactive Arguments of Data) – bleeding edge

The appliance of stealth addresses (#5) or BIP 47 (#6) might have improved Sipa’s privateness, however few wallets presently assist such capabilities.

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