What is Dust Transaction?
Let's find out Dust Transaction meaning, definition in crypto, what is Dust Transaction, and all other detailed facts.
In cryptocurrency, dust refers to the minuscule amounts of assets that settle in digital wallets and hold little to no value. Dust transactions refer to the fact that the amount of dust in the wallet is smaller than the overall transaction fees.
Since it’s difficult to utilize dust due to its lack of value and disproportionate transaction fees, they often end up as an untouched asset in the wallet.
Dust can be utilized with malicious intent. The most common use is for dusting attacks. During a dusting attack, very small, barely noticeable amounts of cryptocurrency are transferred to random wallets. This allows the actors to track the dust activity inside the wallet and breach the account holder’s anonymity.
Some organizations, like Dust Aid, allow holders to transfer any dust settled in their wallets. The collected dust is then donated for various charitable purposes.