ownrwallet
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ownrwallet

Tips on BTC privacy, p.2

A simple bitcoin wallet is nothing more than a bitcoin address and a private key. It sounds so transparent that when you first start working with bitcoin, the question of why you even need a more complex bitcoin client for your work seems ridiculous.

However, as your transactions mount, it becomes exponentially harder to keep track of all the private keys and addresses and the temptation to start reusing those addresses (and thus jeopardizing your wallet) is strong.

Back in the day when bitcoin wallets really were almost that simple, this was a struggle. You had to make a backup each time a pair of random addresses and private keys was generated. A great dilemma of either trying to maintain numerous addresses and keys and risk losing track of them, which inherently meant losing bitcoin, and reusing the same address and risking your privacy.

That’s not all there is to it. Most of the wallets are not full nodes, which means, they don’t fully verify bitcoin rules. In their turn, light node wallets are more user-friendly, but can compromise your privacy. Browser-based wallets will store your private data in a way that you cannot control, in a way that may be centralized or exploited, and stealing private data from a centralized source is much easier.

Things have become much more ordered since the appearance of Hierarchical Deterministic (or HD) wallets. These brought about a major change. In an HD wallet, multiple keys and addresses still remain random and unguessable. But you don’t have to go through a complicated backup to store each pair of private and public keys. Instead, a single seed phrase is attached to each address, and you can derive the whole sequence and hierarchy with the help of it. This seed phrase is the only thing that requires a backup.

Some HD wallets are free, some offer extended functionality at a reasonable charge, so there are many to choose from. And yet, not all HD wallets are the same, especially when it comes to privacy. Many of them will only issue a new bitcoin address when the previous transaction is complete. Thus it would be impossible to make several transactions over a short period of time while keeping them private.

With the help of bitcoin heuristics, people who want to deanonymize your transactions can do it much easier as long as the transactions are coming from the same address. The use of malware will help the adversaries to link the address to the sensitive information. So, users still face a choice of risking privacy or having to deal with encumberments.

OWNR Wallet solves this problem with a forced address allocation feature. It generates a new set of address without waiting for the transaction to the previously used address to complete, enabling you to make multiple transactions over a short time.

This removes the major issue of having to pick between privacy and comfort since you can keep both. So, unless you go bragging about your transactions in every corner of the Internet, which we hope you don’t, your transactions are safe and private with OWNR. As they should be.

The first part of the article can be found here.

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