Unlike Ethereum, where a wallet is exactly one address, which can be seen in a smart contract as msg.sender. In Cardano, there are many addresses for a wallet, every send generates a new address. So how will smart contracts work? For banking applications, in Ethereum an address can be approved (KYC/AML) and whitelisted, but if Cardano addresses keep changing how can it work? Perhaps I missed something, or it hasn’t been developed yet. Will there be some kind of way, such that it will be possible to relate a sending address to a “real life” verified entity?
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Anyone?
There are so many use-cases that require something like this.
Because Settlement layer is using UTXO model and HD wallet, new address is being created for every transactions. But the computation layer will use account model like Ethereum and those two layers will be connected as sidechains.
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Thanks,
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I understand UTXO. The Unspent Transaction Outputs - for which the wallet has the public keys (summed together) is the balance. Outside the wallet, which generates the keys, is there a way of (programatically) getting the same set of public keys? (with the permission of the user)
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Do you have a document for how the two will relate? You say “connected as side chains”, link would be helpful.
Daedalus creates a new send or receive address automatically to prevent address re-use. This is purely a security best practice to increase privacy. Addresses can in fact be re-used in practice, so there is no issue.