There's a nifty thing when you have a multi-address wallet from a seed, and that is you can send your money directly towards one of it and move all your funds there. But is it safe?
No, you're not. In fact, it even gives you the risk of losing your privacy. By throwing all your coins into a specific wallet, you are essentially reversing any privacy techniques you have implemented, i.e. CashFusion.
Recursion in mathematics is the continued usage of output as an input. You can create recursive statements for quadratic and arithmetic expressions.
I call this act of sending all your coins into a single address a coin recursion. And it's not exactly a bad thing in hindsight.
Effects of Coin Recursion on your Wallet
When you effectively recursively send your coins on a wallet, it can allow certain parties to track down your usage of Bitcoin Cash. Other people who have the ability to crack cryptographic equations can reverse-engineer parts of your seed phrase if they can see even two of the words within that phrase. By effectively doing coin recursion; anyone who tracks your coins through multiple addresses can confirm who you are if you combined all of it at once. It also allows other malicious users to seed your other addresses, and if you touched them by sending all of them to the same address, you effectively reveal yourself in full.
In essence, this allows blockchain analysts to pin down who uses the addresses.
There is also a positive side to coin recursion, and one of the good things can be seen during the November 2020 Network Upgrade/Hard Fork. By recursively joining all your coins with an already-split Bitcoin Cash transaction, you split your coins.
Another good side-effect of recursion is the ability for you to manage your coins more effectively and it decreases the number of transaction fees needed when you submit it to a CashFusion round or spending it in general. There is also the bonus of CashFusion, where higher coins get to higher pool tiers.
Positives in coin recursion
Allows you to split coins especially when a chainsplit happens.
Allows you to use fewer transaction fees when using it for payment.
Allows you to get a higher chance of your coin getting Fused based on the applicable tier.
Negatives in coin recursion
Consolidates all your coins into a single trackable address.
Allows blockchain analysts to track your other transactions, especially when you have used multiple addresses with transaction history leading up to your single address.
How is BCH solving this?
Bitcoin Cash is solving it by creating a way to make reusable addresses. The specifications are already created by imaginary_username, and here is the link: here
In essence, the plan is to create a system where one address will generate an alias connected to a public address. Hopefully, this goes through soon.
Anyhow, this is shorter than expected because of a writer's block on article-based materials. I have been writing fanfiction after all, and college is hitting hard these days.
This is Rowan, signing off, and have a good post-November 2020 Upgrade experience.
