Another concern: If someone uses an anonymizer agent like Tor, how will your "recognition" system work? It could be that it will identify the user based on the exit point, which would be a serious problem as it's likely that eventually two users will have the same exit point.
The recognition system works with cookies. Cookies are stored locally by your browser, so as long as your are using the same browser to come back to the website, it doesn't matter whether you use Tor or not.
I'm a bit worried that I might put money into a wallet and then lose the address. Hypothetically, if I were able to tell you the exact balance of a wallet (and that balance were something unique like 142.41305), would you be able to send me a link?
I'm sorry, but I would probably not want to that, no. Remember, Bitcoin transactions are public. Somebody else might - maybe with some additional clues - figure out that some Bitcoin address belongs to Instawallet and can just look up the balance on blockexplorer.com. I guess it would be ok if you would tell me the correct balance plus the last couple of characters from your secret link. Just write that down somewhere, to be safe.
well, i'm having problems with it. easy to get 2 send tx's into instawallet of .01 btc each but now can't get them out. instawallet shows balance of zero, my btc wallet shows 2 deposits of +.01 however they are greyed out and have 0 confirms. have contacted JAV but have yet to get this fixed.
Please give this at least 24h to sort itself out. If you quickly send coins back in forth, then these transactions look very "spammy" to the Bitcoin network and can potentially take a long time to be confirmed.
How does the address allocation work for this?
I sent 0.02 btc to the generated address at instawallet, works okay.
Then I sent those 0.02 btc back to another bitcoin client. When I return to instawallet page a new receiving address has been generated, why does it do that?
What happens if I now receive a payment at the old address that I was allocated first, who has control of that?
Every Bitcoin address you ever saw on your Instawallet page will always be yours and you can still receive payments there. asdf explained it right: You have one specific Instawallet URL, which is tied to an account in the Bitcoin wallet. The Bitcoin daemon automatically assigns a fresh Bitcoin address to an account once it receives or sends out a transaction. The old ones continue to be associated with that account though, so they will still work.
It's kind of an un-intended side effect of using the account feature right now. I can understand how it can be confusing that the addresses change from time to time and I will probably soon put code in that will just keep the address static. But for now: Don't worry about changing Bitcoin addresses, they are still all tied to your Instawallet URL.