Use of HD wallet(multiple addresses)

Implementing HD wallet in IndieSquare’s mobile wallet is something a lot of community members ask for.

We started thinking what kind of implementation satisfies the most users’ needs, but we need more feedback and inputs from the actual users directly.

Personally, I mostly use 3 addresses for my counterwallet.io; main account with many tokens, personal account for a little bit more security, and a test account. I have some more addresses but they are rarely used.(I think I am not fully utilizing HD wallet to be honest though)

So, the question is how do you guys use different addresses in an account and for what purposes? Is it mostly about privacy or some other reasons?

I use it in the way similar to yours:

  • main address for transactions, BTC, XCP and maybe another active token
  • assets address where I keep several tokens I bought and/or registered
  • “savings” address which I usually use to move tokens/BTC to/from crypto exchanges, and from which I participate in crowd-sourcing

Of course that was the plan. In reality I sometimes get lazy and use any.
But several addresses could be used to simplify accounting for those who are meticulous about their crypto assets and/or have many transactions.

Security-wise it would be nice to have a 2-2 multisig address for “savings”, if one has a larger amount of any asset it could be secured better this way (in fact there was a question about that earlier today).

Personally I’m fine with just using one address. However, I guess most users are of the opposite opinion.

For the mobile wallet maybe it’s an idea to show the accumulate value of each token (not specifically how much that is on each address). Only when sending and receiving, the user has the option to choose which address to use.

For me the mobile wallet is primarily a Bitcoin wallet. The Counterparty support is a great additional feature - which is why Indie Wallet is my favorite mobile Bitcoin wallet (it;s fun when you are on a bar and teach about Bitcoin to continue telling about Counterparty - then have the guy download IndieWallet and send him some FLDC to play with … this is my use of mobile wallets ATM)…

Yeah the same here. I also get lazy and mix up the transactions, defeating the purpose of using multiple addresses.

Security-wise it would be nice to have a 2-2 multisig address for “savings”, if one has a larger amount of any asset it could be secured better this way (in fact there was a question about that earlier today).

this is a very intersting idea. I personally would something like this to secure my savings address.

As for the mobile wallet, would you like to have multiple addresses just like on browser or do you think generating a new address for each transaction like bitcoin wallets like Bread wallet or Mycelium do? On mobile, I’m suspecting the latter might be good enough.

Personally I’m fine with just using one address. However, I guess most users are of the opposite opinion.

I actually agree with you, I’m personally okay with using one address repeatedly as I am not making the most use of multiple addresses and I don’t really have anything to hide(I don’t keep that many tokens on mobile)

For the mobile wallet maybe it’s an idea to show the accumulate value of each token (not specifically how much that is on each address). Only when sending and receiving, the user has the option to choose which address to use.

This is one method we are considering now a la just like bitcoin wallets.

For me the mobile wallet is primarily a Bitcoin wallet. The Counterparty support is a great additional feature - which is why Indie Wallet is my favorite mobile Bitcoin wallet

Thanks, haha.

(it;s fun when you are on a bar and teach about Bitcoin to continue telling about Counterparty - then have the guy download IndieWallet and send him some FLDC to play with … this is my use of mobile wallets ATM)

Someone else has pointed this characteristic out as well. Since many Counterparty tokens are not really supposed to be money like bitcoin, people seem to be less skeptical and easier to get them interested.

I don’t remember the maximum number of addresses that could be created (could you run out of addresses?), but I’ve never desired increased privacy for token-based transfers. Also because there aren’t that many sends, it should be much easier to reconstruct which address sent tokens to which address(es).

I don’t know - maybe some would like it for bitcoin transfers. I just checked and there’s a bitcoin forwarding service: https://live.blockcypher.com/btc/forwarding/
After you enter an address, it creates a forwarding address for you (which doesn’t provide increased anonymity, but I imagine a similar forwarding address could be created to route payments through a CoinJoin server or some similar mixing service). https://sx.dyne.org/anontx/ has a similar concept. (Also see http://bitcoin.stackexchange.com/questions/12280/how-automatically-to-forward-bitcoins-from-one-address-to-another for a DIY approach; note the comment about the need to feed the forwarding address with BTC to pay for tx cost of forwarding :-)).

I guess there’s some counterparty risk (if you don’t control the forwarding address), but for those who care about privacy could create this forwarding externally (or you could reuse their source in your app) for their bitcoin transactions.
But I wouldn’t complicate things - it’s probably better to add features required by more than a handful of users.

Personally I think 3 addresses is just nice.

2 Likes