But if I may ask, what could make a person want to blacklist a wallet address from sending him/her some BTC? Because I'm yet to get any reasonable reason for one to think about the implementation of such feature amidst the millions of BTC wallet address in existence.
But, however, I'm very much open to learning if anyone has a reason why such feature is needed. Thank you
Let's say you are a big company (like MicroStrategy) and, for whatever reason (like wanting to look good in the eyes of some square-headed politicians) you don't want any questionable money getting to your wallet or cold storage. It could be an use case.
Or it can be a way to fight dust attacks.
Thank you for such useful explanation Sir, as this has actually broadens my horizons into understanding the use-case and likely applicable areas of such feature if finally implemented into the Bitcoin ecosystem for our fund security and identity untraceability (i.e Dusting attack)
Aside of the explanation above they are also this dust attack issue where dust amount of bitcoin is sent to your wallet to monitor it. Blacklisting will simply stop it from coming into the wallet
But don't you think it's only when you already know which wallet address that intend to send you a dust coin, that you can then possibly blacklist? Because inasmuch as we have got millions of wallet addresses out there, and you went about blacklisting just only a few, a person who wants to dust your account can still possibly use a totally different wallet address to dust your account in such case. Hence, I think if such tool can have a button to stop all incoming transaction/funds until after been verified and accepted before it could be credited, then I think will such tool be more useful. And that alone alters the decentralized nature of the Bitcoin Blockchain.
The only thing close to blacklisting is the restriction of one’s CEX accounts which is not a bitcoin protocol feature.
And even on a CEX exchange, what can only be blacklisted is the individual's wallet, and not the wallet address such as Bitcoin from receiving funds from external sources. So I don't think the exchange has such power, though they could confiscate such funds from being deposited into the intended account.