Dust Transactions in Crypto: Small but Significant
Dust transactions are a miserable amount of bitcoin in a wallet with a value that outweighs the cost of the transaction fee.
What are Dust Transactions?
Dust in cryptocurrency terms commonly refers to the tiny amount of virtually worthless assets that are scattered throughout digital wallets of investors around the world.
This vast collection of particles with little or no value may seem like an innocent and acceptable byproduct of digital currency. However, it can be used in ways that are considered harmful to financial networks.
Typically, the value of the “dust” in a dust transaction will be much lower than the actual cost of moving the tiny particles. This is often the reason why these fractions accumulate on wallets and rarely see the light of day.
The purpose of attack is to track activity inside the wallet and break its owner’s anonymity. Dust transactions are not only used for malicious purposes. There are charities, such as Dust Aid, that allow users to extract dust from their wallets and donate it to good causes.