So I've been doing a lot of reading on bitcoin privacy a lot lately, and I've got a question. I'm not sure if this is the right board for this, but I feel it is.
So let's assume an address has been made public and everybody knows who that address belongs to, can the owner decide to change that address and move his coins to another address without it showing on the bitcoin blockchain?
I mean can the wallet simply change the address at the request of the owner with verification like the seed phase, of course? Then on the blockchain the new address will not show where the bitcoin came from and the old wallet will just show $0 balance without showing where the coins where sent to?
Yes, it can be done with a wallet that fully supports the silent payment technique. That means the wallet must be able to generate the silent payment address, send funds to that address, perform the privacy preserving scanning to detect incoming payments and finally receive funds from the silent address it originally generated. Sure, it must be able to spend from this address too. AFAIK, no wallet currently offers all of these features in one package. However, silent payments are virtually on everyone's lips, so I hope
sooner or later someone will develop such wallet.