Bitcoin is often considered to be a standard gold standard when discussions about cryptocurrencies crops between users and influencers. Since the introduction of bitcoin’s lightning network, there has been an overall improvement in Bitcoin’s privacy. However, a big bitcoin privacy flaw is still apparent in about 54% of the crypto transactions. The problem indicates the re-use of the address.
A website, Oxt.me, calculated an address reuse ratios formula, which had a precise impact on the trends in which the bitcoin address was reused. Their formula solutions provided them with a percentage of the address used in a particular time period which were not newly created, but were being reused.
According to the graph, in February 2013, approximately 77.63% addresses were being reused. As of December 2017, its percentage decreased to 41.34%. A spike was also recorded in July 2015. Although it was likely to be due to a “stress test” organizing that month.
Since December 2017, bitcoin addresses have been used a lot again. In March 2019, the percentage recorded was 53.57% of the total address which was previously used.
According to Longhash.com, reuse of bitcoin address is considered unethical because it not only weakens the privacy for the entity which reuses the address, but also has blockchain next user, because they are all Talk through the same address.
Forbes reported that Veriblock, a project that uses Bitcoin OP_RETURN transactions in an effort to bring additional security, accounts for 20% of daily betoken transactions. Most legitimate transactions point to the fact that the VeriBlock system has re-used the address several times for its proof-of-proof activities.
However, the trends about routine reuse of address on the Bitcoin network were made seven or eight months before the Veriblock, had any significant impact on the Bitcoin network.