Hi guys. I am not a miner, but i am curious about something. I wamted to see how Ocean mining pool works (and how it is different from others). One thing I discovered is that you identify to the pool directly by the bitcoin address, where you receive your reward.
Doesn't this automatically lead to address reuse? Isn't this something that is strongly advised against?
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Address reuse is generally discouraged for newbs, but its important to identify WHY this is... and how you can still be safe while reusing addresses if you're careful.
Even if you could use a fresh address with every payout, it would still be obvious those addresses received payouts from Ocean because Ocean payout directly from the Coinbase txn.
When you SPEND from your Ocean address, be careful where you spend to. If you send to a KYC exchange, then they know those funds came directly from mining revenue and they can link them to your ID.
When you spend from ANY address, you reveal the script pub-key which makes any remaining balance on that address a bit weaker to brute-force/quantum attacks.
So you could receive many payouts to a reused address, but never spend from that address. When you're ready to spend, rotate your new address for Ocean and wait a while for any remaining payouts to land on the old address. Then sweep the address to a coinjoin or LN swap before sending anywhere that knows your ID.
or dare I say a Liquid swap lol
regarding OP's question, how often does Ocean pool send you payment?
the frequency and the amounts are so small no one will care
definitely generate a new wallet address for your Ocean pool payment (assuming it happens) but you don't have to rotate it to obfuscate your half a penny payout
I tell people to use Coinos for their Ocean payout, on chain or lightning
This is more of a design question then current usage question.
Do people actually do this?
Coinjoin? Yes, but it should not be the last step before payment.
No... Waiting for payments to accumulate and then changing the receive address.
Oh! I know some people that do that but they generally don't have the discipline to not send from it.
For the small miners (and maybe large miner) you can withdraw via Lightning.
You still put in as onchain address when creating account (you sign message with private key) but doesn't have to be used during payout.