One time transparent address

Transparent wallets have the concept of a one-time address, which is supposed to receive funds only once. On the blockchain, this address appears only once in each direction, resulting in a transaction history that is limited to a maximum of two entries: one deposit and one withdrawal. This process significantly reduces the traceability of transactions, thereby enhancing the wallet's anonymity.

However, they have multiple issues.

  1. Every new transparent address slows down synchronization. Transparent synchronization is much quicker than shielded synchronization since the remote server can use a database index, but it is not cost-free.
  2. The wallet must keep the derivation path of the one-time addresses; otherwise, it will regenerate the same address twice. However, when the user recovers from the seed phrase or transfers from another wallet, they will often not know which paths they used. This happened to most users of Zecwallet when they brought their wallet over.
  3. The new wallet can scan a range of derivation paths, but this may only return some of the one-time addresses1, or consider a one time address unused when it was already handed out2. All in all, it is much more preferable to use Zcash's native privacy mechanism: Shielded addresses.
  4. Chain analysis tools use powerful heuristics that defeat one-time addresses. Often, they can link transactions based on other characteristics such as time and amount.

The only use case I can think of is a CEX that only supports transparent addresses. In this case, you may be interested in the workflow described in the section CEX.

Ywallet is unlikely to directly support one-time addresses.

Users are urged to shield their funds instead.

The Keytool and the Sweep are useful tools for working with them.


Footnotes

  1. There may be a more extensive range of unused addresses than expected.

  2. They could have given out one-time addresses that do not have transactions yet.