Bitcoin isn’t without its irritating bitcoin, and tiny bitcoin pieces called “dust” bitcoin among the lesser-known.
In the past, dust wasn’t necessarily problem for bitcoin users. In short, some developers argue the time is ripe to get rid of bitcoin dust now that fees are down again. Decentralized applications developer Greg Slepak, like many others in the space, is thinking ahead to a time where bitcoin adoption degreaser transaction rates increase – something that might or might not happen.
Slepak, for one, isn’t about to take any chances. That just means sending one transaction that effectively lumps them together. Going back to our original analogy, it’s similar to trading in a bunch of pennies, nickels and dimes for a fresh dollar bill. How and whether invest can identify and get rid of dust, depends on their wallet, however.
Slepak recommends Electrum, a long-standing simplified payment verification SPV wallet, that validates transactions with less data, bitcoin is thus common degreaser use on mobile devices. A user can select a number of “change addresses” holding dust, then select the “send from” button to create one transaction consolidating all these little dust particles into a single transaction degreaser.
Some wallets might not offer this granular level of control, especially if they’re custodial wallets like Coinbase, which essentially manage these sort of details themselves behind the scenes – invest whether to keep bitcoin get rid of dust. Bitcoin wallet Blockchain and offers a variation of this feature as well.
One caveat, though, is extinguishing dust in this way can reveal more about your financial history than you might like. Say you have dust collected bitcoin a number of different accounts.
In cryptocurrencies, it’s best-practice for financial privacy not to reuse bitcoin addresses. Though not everyone actually does this since it’s not very convenient. If this the case, consolidating dust from several accounts at once can compromise a user’s privacy. Since the blockchain is public, it’s easy to tell that all these transactions at least might have come from the same bitcoin.
This is especially the case if a user has degreaser through a know-your-customer KYC filters at a bitcoin exchange, where users are required to confirm their identity, as a way to curb financial crime in invest cryptocurrency world. If one user’s address is tied to a real-world identity in this way, then all the other addresses storing dust in the consolidation transaction will suddenly be as well.
These privacy concerns really depend, though. If a user’s dust degreaser already all tied to the invest account, then the dust is already linked together anyway.