WonteetZebugs on Nostr: Example : Let's say someone buys some L-BTC with KYC and some L-BTC no-KYC. Without ...
Example : Let's say someone buys some L-BTC with KYC and some L-BTC no-KYC. Without coin control, these two might be combined on a future spend. Of course, one could create different wallets.
Other example : let's say someone buys all his L-BTC without KYC. But then he spends some sats on a service that requires some level of doxxing (address, or name, or both, etc). That online service now knows that person's name and/or address. The change will go back as a UTXO in the liquid wallet. That UTXO might be combined with the other liquid UTXOs on the next spend. So now the merchant knows those addresses are likely related to that same person. If the merchant is forced to hand over that information (or does so willingly, on his own), the info might be combined with other such info and therefore lessen the privacy of the liquid user.
One might prefer to avoid that, if possible.
Or maybe I'm missing something. That's my understanding at this point.
Other example : let's say someone buys all his L-BTC without KYC. But then he spends some sats on a service that requires some level of doxxing (address, or name, or both, etc). That online service now knows that person's name and/or address. The change will go back as a UTXO in the liquid wallet. That UTXO might be combined with the other liquid UTXOs on the next spend. So now the merchant knows those addresses are likely related to that same person. If the merchant is forced to hand over that information (or does so willingly, on his own), the info might be combined with other such info and therefore lessen the privacy of the liquid user.
One might prefer to avoid that, if possible.
Or maybe I'm missing something. That's my understanding at this point.