Hello HYPmasters!
REGARDING STAKING-
When you are sorting coins into 4k blocks (recommended size?), are you supposed to keep putting them into the same address?
Or the address doesn't matter - STAKING WISE?
PRIVACY-WISE-
I always thought u are supposed to make new addresses for every incoming transaction-- for privacy reasons?
REGARDING SECURITY
And whenever u spend from an address u are supposed to empty & discard it-- for security reasons?
Thanks!
The address doesn't matter. You can do all manipulations with new addresses if you like and if you care about security, but it is not necessary. But there is one underwater stone you should know about if you don't want to lose your coins. It is the keypool size. You can read more about it
here.
Regarding splitting blocks - it is best to send to the same address in your wallet, because once I lost about 1000 coins when I had done a lot of splitting after buying large amounts and then my wallet crashed so I had to go back to my 2 week old backup - which did not have all the random addresses that I had been using by not configuring the "change address" and so I lost everything that I had split after the 100 addresses in my backup were exhausted. I lost about 0.1 BTC that time. So since then I know to configure the "custom change address" to my own wallet address and to not eat up all the random addresses in my wallet, so my backup stays current for a much longer period.
It does not matter for the staking itself if the blocks are in the same or all different addresses, unless you want to prove the balance of your wallet, there are some coins where your entire balance determines how much rewards you get, so then you better keep everything in the same address.
Privacy of incoming transactions:
If you don't want the money to be traceable to you then it is a good thing to use a new receive address for different people sending money to you. Also for yourself it can be easier to keep track of who is paying you. Note that if you are splitting *those* inputs then you should re-configure your custom change address to that one or you are still sending your coins to your original address, which will make it traceable to your original address again. The fact that all coins and addresses are administrated in the publicly accessible blockchain has benefits (trustless money transfer) but also drawbacks (traceability). To most of us that is not a problem but it depends on what you use your money for, if you need to shield it. Since addresses are typically not published unless you are either dealing with someone or publishing it (like in a sig of a post like this) the privacy is normally not a concern.
Security of outgoing transmissions:
There is no point in emptying an address once you have sent from it, since nobody can use the balance of that address without the private key that is only available in your wallet.dat. *if* your computer was hacked and your wallet.dat file was stolen *then* it is a good idea to transfer all funds to a new wallet and discard the old, but any other time there is no point. The transfers out of the old address can be viewed on the block chain, so the new address is know just like the old where it was sent from and even if you sent to someone you do not trust, they cannot do anything with the knowledge about the address from where it was sent, since they do not hold the key.
Hope this clarifies the working of the wallet.
). It is also a barrier for those who will bring money in from other economies (ordinary customers-currency users) that will prevent from pulling money out of the coin economy effortlessly. You either consume and spend money (and thus feed the economy), or you work to let the network function (and feed yourself).