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Dust

Dust in cryptocurrency refers to a very small amount of digital currency, often leftover from transactions and considered negligible.

What is Dust?

Dust is a term in the cryptocurrency world for tiny fractions of coins left after trades or transactions. Often too small to be useful on their own, these dust amounts can accumulate in a user’s wallet. The term is particularly relevant in Bitcoin, where the smallest unit (known as a “satoshi”) can often result in these minuscule amounts due to the nature of blockchain transactions.

For example, after a user sends Bitcoin, there may be a fractional remainder that is not enough to transfer on its own due to transaction fees. This leftover fraction remains in the wallet as dust, effectively trapped unless it is combined with other funds in future transactions.

While these tiny amounts may seem trivial, dust can accumulate over time. In some cases, attackers use “dusting” attacks, sending small amounts of dust to multiple wallets in an attempt to track transactions and identify wallet owners, posing potential privacy risks.

Dust remains an interesting aspect of cryptocurrency wallets, representing both technical and security challenges in blockchain transactions.