Hardware wallet company Ledger introduced Coin Control, a new software that protects the privacy of Bitcoin users.
Ledger, the manufacturer of the well-known Nano S and Nano X, has powered Ledger Live software with Coin Control feature that helps users manage the cryptocurrencies they store on their devices.
It is a common practice in accounting practice that the first assets purchased are the first to be sold when there is a sale, but Ledger claims that this mentality can be harmful when applied to crypto money storage. Ledger users can now choose which Bitcoin addresses to use when making transactions, rather than automatically using the oldest cryptocurrencies in their wallets.
According to Ledger, this feature is very important for privacy because it prevents others from accessing your identity through trail tracking (Bitcoin dust). Bitcoin powder represents the amount of BTC which is also lower than transaction fees. Blockchain analytics firms or researchers can send Bitcoin dust to some addresses, and when the owner spends this amount (or this amount with the Bitcoin they own), they can reveal important information about their identity.
This is why Ledger says you no longer need to touch these tiny ‘unspent transaction outputs’, also known as UTXO. (However, it has not yet been found how users can take Bitcoin dust or clear their wallets while maintaining their privacy)
Ledger pointed to Coin Control’s two additional benefits:
If users want to spend these UTXOs and clear their wallets, they can choose the more valuable ones and thus save on network fees.
Users can assign specific addresses for specific purposes, such as when an employee creates separate bank accounts for business and personal expenses.
This feature has been activated for Bitcoin and Bitcoin derivatives as part of Ledger Live version 2.11.1, which went live on Tuesday, September 15.