Bitcoin, Fraud and Scams, News & Updates

Latest Hardware Wallet Feature prevents Bitcoin Sprinkling Attacks

The standard accounting practice is called “first-in, first-out” where the oldest assets are the first to be sold. The hardware wallet company Ledger said that it could be harmful when applied to crypto storage.

The maker of the Nano S and Nano X, Ledger, has updated their Ledger Live Software, this helps users manage crypto stored on their devices, including Coin Control. Now the Ledger users can limit which of their Bitcoin addresses to use when making transactions, instead of mechanically using the oldest coins in the wallet.

Ledger says the privacy is important because it prevents others from tracking the identity through the use of dust. Bitcoin dust is a microscopic amount of BTC worth less than the transaction fees to direct it.

Others may gladly pay the fees, nevertheless. Blockchain analytics firms and investigators can send the dust to specific addresses because if beneficiaries will curve this dust-up with the rest of their Bitcoin and spend it, they provide appreciated clues to their identity. This is why ledger has been saying that users don’t have to touch those tiny “unspent transaction outputs,” it is also known as UTXO.

Ledger had pointed out two additional benefits of Coin Control: When users didn’t want to spend the UTXO and clean out their wallet, they can choose more valuable ones, therefore saving money on network fees. Also, users can designate specific addresses for specific purposes, parallel to how a freelance worker can maintain separate bank accounts for personal work expenses.

The feature can be available for Bitcoin and Bitcoin derivatives as part of Ledger Live version 2.11.1 that went live last Tuesday, September 15.

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