The manufacturer of the wallet hardware, Ledger recently updated its software package More privacy and control over cryptocurrency transfers to prevent dust or dust attacks.
A dust attack occurs when a malicious actor Sends small amounts of Bitcoin to a wallet to breach user privacy for future attacks.
Ledger Live version 2.11.1 introduces a new feature called Coin control as allows users to adjust the transaction settings to ensure more privacy or optimal use of fees.
The announcement added that the feature works through the ability to manage hierarchically deterministic (HD) wallets or multiple different Bitcoin addresses.. Now users can select the addresses they would like to use for transactions using coin control instead of the previous standard first-in, first-out (FIFO) method which automatically uses the oldest address.
This is important because prevents third parties from tracking these transactions over small amounts of BTC, Called dustthat are worth less than the transaction fees. This powder can be used to track the owner’s identity through analysisas these small unspent transactions (UTXO) can add up. In August 2019, a large-scale dust attack was carried out against Litecoin users.
Ledger stated that with Coin Control, Users can simply choose not to use this little UTXO, Add;
“As such, they cannot track movement. Bottom line: it can be a game changer when it comes to your privacy. “
Further functions of the software update are: a Optimizing the network tariff structure by allowing users to select higher value UTXOThis reduces the byte size of the transaction. You also have the option to select specific addresses for transfers in case payments need to be kept separate.
Reddit users welcomed the update with an addition.
“This makes the dust attacks unusable. It’s also great to be able to skip small entries when the fees are high. I’ve been waiting for this feature. Thumbs up!”
Others asked for more functionality, like adding TOR, This is open source software that enables anonymous communication. The addition of personal nodes was also requested because some users have trust issues when using a centralized company like Ledger.