Author: htimSxelA 2019-04-02 20:01:34
Published on: 2019-04-02T20:01:34+00:00
The writer proposes a missing feature in Bitcoin which could enhance the security of exchange cold wallet systems. The feature would allow users to choose the amount they wish to deposit themselves, but ensuring their deposits are uniquely trackable. This would help exchanges switch to a more secure alternative of having all customers depositing directly into their singular cold wallet address. The author also highlights issues with current hot-deposit system used by most exchanges, where there is always the danger of a sophisticated hacker being able to capture private keys to customer deposit addresses and that an integrated address would eliminate the need for the "sweeping" step required to move multiple customer deposits from a hot address into a single cold address. There are several other minor advantages such as lower fees for exchanges and less need for large rescans after loading huge amounts of customer addresses into client software. However, the proposal may not be practical due to increased resource requirements per transaction and embedding identifying information into the blockchain which is generally bad for privacy.
Updated on: 2023-06-13T17:54:49.138589+00:00