6, Today’s Reflection (Part 4):

Common Uses of Coins

Today, I will be thinking about the uses of coins. Generally speaking, do the following uses seem accurate?

  1. Provide or register the address where you want to receive coins.
  2. Receive coins through that address.
  3. Send the received coins to another address.

This sequence of exchanging coins is often done unconsciously. It feels like this flow is repeated many times.

However, when examining these transactions in detail using the gettransaction command, it becomes clear that each transaction can become very complex depending on the circumstances. Each transaction takes on various forms based on the conditions and context at the time.

For example, the timing of the transaction, the type of the recipient’s address, and the fee settings can all cause slight variations in the transaction’s details. Factors such as the speed at which the transaction is confirmed and the allocation of computational resources for that confirmation also play a role.

Thus, the use of coins, while seemingly simple, actually involves many intertwined elements. This complexity inevitably leads to the vulnerabilities I pointed out in the previous reflection.

By the way, there seems to be a frequent occurrence of coin leakage in wallet services and exchanges. Why do these places often experience such issues? At first glance, it might seem like it’s because they handle a large number of coins, but that’s not the case.

The fundamental reason is that these places have a very high number of transactions on the blockchain.