Friday, 30 November 2018

Electron Cash feature suggestion for improved privacy (quarantined private keys)

In order to better preserve privacy it would be great if Electron Cash permanently quarantined private keys that the wallet has emptied.

A tactic law enforcement uses is that they send something like 1 cent worth of crypto to addresses that they know have been involved in something they don't like (for example buying drugs). Then they monitor that UTXO and if the wallet ever merge it with another UTXO it helps them to figure out which addresses the owner now uses, even if it has been several years since he bought the drugs.

What I'm suggesting is that the wallet remembers all private keys (to enable stuff like refunds) but once funds have been moved out of a UTXO associated with a private key the software automatically "locks" the key so that it is never used again unless the user manually unlocks it (which he should only do if he expects for example a refund on that address). Crypto on locked keys shouldn't even be included in the wallet balance if it is below a certain threshold (configurable in the wallet settings) and if a substantial amount is locked it may be included in a separate parenthesis next to the wallet balance and should be marked with a "quarantined" symbol.

This should work even if you import a seed; if the wallet discovers a private key that have ever had funds moved out of it it gets quarantined. Naturally users should be able to turn off the quarantine feature in the settings but it should always be enabled by default to protect the privacy of people that don't understand how bitcoin works.

Ping /u/jonald_fyookball

submitted by /u/NotNonSequitur
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source https://www.reddit.com/r/btc/comments/a1kb5p/electron_cash_feature_suggestion_for_improved/

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