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Topic: Pros and cons of using new Bitcoin addresses for each transaction? - page 4. (Read 48603 times)

hero member
Activity: 602
Merit: 500
Your *what* is itchy?
So, i use about 8 addresses (one for pool mining, one for free-btc-website-scraping, one for "friends", one for Bitcoinary, and a couple others).  basically helps me keep track of what came from where.
full member
Activity: 210
Merit: 100
So if you're not doing anything wrong why are people so worried about being anonymous?  i guess i've never worried about it yet. Why is it such a major part of bitcoin?  just curious.
sr. member
Activity: 294
Merit: 261
Could this topic be folded into the list at the end of the Introduction to BitCoin?  If so, can someone provide a good summary of the important things it contains?  I think for usability's sake having as few stickied topics as possible is desirable.

Is anything missed by linking to it via the question:

"What are the pros and cons of using new bitcoin addresses for each transaction?"

member
Activity: 98
Merit: 10
The addresses are valid forever unless you lose your wallet.  The only disadvantage is that the address receiving a transaction is visible to all nodes.  It is easy to automatically generate a new address each time a page is refreshed on a donation page using the JSON RPC interface.


Managing all those addresses in your wallet is a real PITA though.  I wish there was some sorting ability in the address book as well as a method to "hide" addresses that you don't actively use. 

I really should tear apart the client code and write a new app [I would use WPF, but it would target Windows only AND it would steal a little from the GPU if you are running the app on a machine that you are also doing mining on.
legendary
Activity: 1064
Merit: 1071
There are 2^160 addresses, not all characters in the base58 representation are significant, as it also contains a version number and an error detection code.
sr. member
Activity: 280
Merit: 250

I think the number of addresses is like 33^62 (26+26+10?) that's over 10^94. If a trillion people each have a trillion addresses that's 10^24. The odds of picking a taken addy even after all that is so vanishing it's absurd. And no 10^24/10^94 is not 1/4.

Wouldn't it actually be 62^33? I think you got the order wrong.

Yes. Yes it would.
sr. member
Activity: 350
Merit: 251
you are only ever anonymous on your 1st trade if you actually generated the BTC, after that you are always able to be tracked, but why do you care, and it only makes trading more difficult.
member
Activity: 98
Merit: 11
I used to have trouble managing payments to a service that used a new address every time. Seems to conflict with the idea of an address book. Imagine if everyone's phone number changed every call. Not too convenient.
Yeah, if it's basically a publicly available service, then it makes sense to reuse the same address.

But on the other hand, it might make anonymous donations/payments to that service a little more difficult.

As always, privacy and security trade off against simplicity and ease-of-use Cheesy
newbie
Activity: 48
Merit: 0

I think the number of addresses is like 33^62 (26+26+10?) that's over 10^94. If a trillion people each have a trillion addresses that's 10^24. The odds of picking a taken addy even after all that is so vanishing it's absurd. And no 10^24/10^94 is not 1/4.

Wouldn't it actually be 62^33? I think you got the order wrong.
Hal
vip
Activity: 314
Merit: 1485
I used to have trouble managing payments to a service that used a new address every time. Seems to conflict with the idea of an address book. Imagine if everyone's phone number changed every call. Not too convenient.

Here's what I do now:

1. Copy the payment address.
2. Choose Send Coins in the client.
3. Choose Address Book in the popup.
4. Choose New Address.
5. Enter a name for this payee, and paste in the Bitcoin address. Use the same name for all payments to this payee. For example, I use MBC for all transfers to my mybitcoin.com account.
6. Click OK in the New Address window.
7. Click OK in the Address Book window.
8. The Pay To field now holds the payment address. Enter the amount and click Send.

This way the transaction in your wallet will show who it's for. It does add some extra steps though. I wish sites would give customers the option to reuse a persistent address.
administrator
Activity: 4228
Merit: 8647
Correct me if I'm wrong, but changing the address after each transaction doesn't give you anonymity.

Conducting business with a known party is guilt by association in the eyes of the intelligence community.

A permanent trail of transactions is available, even searchable. Changing the address only makes the trail slightly harder to follow.

Moreover, the transactions are automatically sorted as normal and strange. Block Explorer is doing the FBI's job for them, so they can sit back and watch baddies trade.

You're right that it doesn't provide instant anonymity, but it does help. I've actually tracked people through transactions, and the constantly-changing addresses makes it much more difficult to follow. It prevents casual snooping, at least.
newbie
Activity: 4
Merit: 0
Correct me if I'm wrong, but changing the address after each transaction doesn't give you anonymity.

Conducting business with a known party is guilt by association in the eyes of the intelligence community.

A permanent trail of transactions is available, even searchable. Changing the address only makes the trail slightly harder to follow.

Moreover, the transactions are automatically sorted as normal and strange. Block Explorer is doing the FBI's job for them, so they can sit back and watch baddies trade.
administrator
Activity: 4228
Merit: 8647
Oh okay, I can still get BTCs sent to any of my old ones though right? No matter which one is in my address bar?

Yes.
full member
Activity: 336
Merit: 101
I've noticed that my bitcoin client likes to create new addresses by itself, does this happen to anyone else?

It does that when you receive BTC on your active address, to encourage you to use a new one.

Oh okay, I can still get BTCs sent to any of my old ones though right? No matter which one is in my address bar?
administrator
Activity: 4228
Merit: 8647
I've noticed that my bitcoin client likes to create new addresses by itself, does this happen to anyone else?

It does that when you receive BTC on your active address, to encourage you to use a new one.
full member
Activity: 336
Merit: 101
I've noticed that my bitcoin client likes to create new addresses by itself, does this happen to anyone else?
newbie
Activity: 14
Merit: 0
just a little bit more hassale but its not a biggie
legendary
Activity: 1596
Merit: 1022
Can someone please give me a list of the pros and cons of using new Bitcoin addresses for each transaction? It seems very inconvenient to use a new address each time.

warning, I am a newbie...liked the videos presentations, did some research...and tried it.  Bitcoin.exe on an i7 --only application---24/7 x 10 days---on generate mode.  Only successful in the gratuitous .05 BTC from faucet per computer per public ip address.  I had plans to accept Bitcoins on all my websites...hired web developers  ...faced ZERO SUPPORT ANYWHERE.

Bitcoin definitely needs to grow some organizations that can offer technical advice and software support for bitcoin itself.  Most major open source projects have one or more companies doing this.  That would help with bitcoin adoption, too.

Quote
So question number ONE.  What happens to the Bitcoin if I don't use it, save it?  I speculate it ONLY serves to increase the value of those users and optimists who are "fan boys".  I have spent too much time...wasting...which cost me more money than I could have possibly made  in two weeks.

Bitcoin is a currency, literally, in its infancy.  The concept (distributed notary service with digital signatures) is, as far as I know, the first of its kind.  It is still being "bootstrapped," meaning that bitcoin does not have a self-supporting economy -- which must, by its nature, encompass mundane things like buying gasoline with BTC, paying rent or mortgage with BTC, buying groceries with BTC.

So, what can you do with the bitcoins you have right now?  Not a lot, if you ignore bootstrapping services (services like currency exchanges or bitcointo.com).  Mostly software services like web hosting, and an odd assortment of tangible goods.

But it seems like most folks in the bitcoin community recognize that we just started construction of a very interesting and unique experiment in currency.  Any endeavour is, unfortunately, very high risk from an investment standpoint.  It might fail for dozens of reasons...  but wouldn't be fun and interesting if it succeeded?

Quote
Question Number Two.  My PC's were set up by my SYSADMIN's.  After a few bouts of "actvity"....I ended up with 100% CPU on all cores...and the "connect" prompt  says unconnected.  Thats a lot of power and CPU cycles for Nothing...a big fat waste of time.  You want me to be impressed so we can get the concept moving?  Put up simple to understand "NOOB" isms...so that morons like myself...can learn HOW to connect.  If no connect...why the 100% CPU on all cores and NOTHING going on?  FOR DAYS?  I don't have time for games.  When you guys are serious...I'll be back.   I love all the concepts supporting it...but I will not GIVE AWAY valuable product from my websites for coins that have no value TO ME.

Step 1: Turn off "Generate coins" option.  It is a waste of time and electricity.

Step 2: Wait for all the blocks to download.  As of this writing, there are 109245 of them.

Step 3: Don't panic, and read the forums.  If you can post specific problems you are seeing after following steps #1 and #2, you can get answers.

Step 4: Hire better SYSADMIN's.  They should be able to answer these basic questions and offer basic support, or not install software that neither you or they understand.

newbie
Activity: 1
Merit: 0
Can someone please give me a list of the pros and cons of using new Bitcoin addresses for each transaction? It seems very inconvenient to use a new address each time.

warning, I am a newbie...liked the videos presentations, did some research...and tried it.  Bitcoin.exe on an i7 --only application---24/7 x 10 days---on generate mode.  Only successful in the gratuitous .05 BTC from faucet per computer per public ip address.  I had plans to accept Bitcoins on all my websites...hired web developers  ...faced ZERO SUPPORT ANYWHERE. 

So question number ONE.  What happens to the Bitcoin if I don't use it, save it?  I speculate it ONLY serves to increase the value of those users and optimists who are "fan boys".  I have spent too much time...wasting...which cost me more money than I could have possibly made  in two weeks.

Question Number Two.  My PC's were set up by my SYSADMIN's.  After a few bouts of "actvity"....I ended up with 100% CPU on all cores...and the "connect" prompt  says unconnected.  Thats a lot of power and CPU cycles for Nothing...a big fat waste of time.  You want me to be impressed so we can get the concept moving?  Put up simple to understand "NOOB" isms...so that morons like myself...can learn HOW to connect.  If no connect...why the 100% CPU on all cores and NOTHING going on?  FOR DAYS?  I don't have time for games.  When you guys are serious...I'll be back.   I love all the concepts supporting it...but I will not GIVE AWAY valuable product from my websites for coins that have no value TO ME.

Explain it to me ---I want to trust...but I have seen nothing to make me want to trust.  10 MBPS uplink screaming PC's ...for NADA....

I understand the trade concept but who has the coins to buy what I have---real products with value--I even offered a discount to Bitcoin currency...but where is the beef? 



Please expaklin tio tbhis ifdio
Please
hero member
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