Hardware wallet maker Ledger recently updated its software package to provide more privacy and control crypto transfers to prevent dust attacks.
Dust attack is when the attacker sends a small amount of bitcoins to the wallet in order to further expose the user’s privacy to further attacks.
Ledger Live 2.11.1 introduces a new feature called Coin Control, which allows users to modify their transaction parameters to enable more privacy or optimal commission use.
The announcement added that this feature works through the ability to manage hierarchical deterministic wallets (HD) or multiple different Bitcoin addresses. Users can now specify which addresses they want to use for transactions with Coin Control instead of the old standard First In First Out (FIFO) method of automatically using the oldest address.
This means something because it prevents third parties from tracking these transactions with small amounts of BTC, called dust, which cost less than the transaction fee. This dust can be used to track the identity of the owner through analysis as the output of unused small transactions (UTXOs) can be accumulated. In August 2019, a massive dust attack was carried out on Litecoin users.
Ledger stated that with Coin Control, users can simply unsubscribe from the UTXO mini and add;
Hence, they cannot detect any movement. In short: It can be a game-changer when it comes to your privacy. ”
Other features of the software update include optimizing the network fee structure, allowing users to specify UTXO at a higher value, thus reducing the transaction size in bytes. It also has the ability to define specific addresses for transfers, should the payments need to be split.
Reddit users have welcomed the update of the add-on;
This will render dust attacks useless. The ability to not include small entries with high fees is a good thing. I was waiting for this feature.
Others have requested more functionality, such as adding TOR, which is open source software that allows you to communicate anonymously. My Sites has also been requested to be added because some users have trust issues when using a central company such as a ledger.