Malicious Address Recognition and Interception Have Become Standard Features for Crypto Wallets—Discussing the Current Status and Challenges of This Security Upgrade

Wallet security should have been taken seriously a long time ago. Currently, leading exchanges' wallets have gradually implemented automatic recognition and interception of malicious addresses. Users receive real-time risk alerts when transferring funds, which is a clear improvement. How exactly is this done? The core idea is not complicated—first check the address, then decide.

An even more advanced solution is to establish a shared industry blacklist database maintained collaboratively by multiple organizations, with real-time updates on scam addresses, Trojan contracts, rug pull projects, and other malicious activities. This way, no matter which wallet a user uses, they can access the latest risk data. Some top exchange wallets are already doing this, and the results are quite promising.

Additionally, there's a small but thoughtful optimization: hiding dust transactions (tiny transfers involving a few satoshis or Gwei, such as junk tokens or small transfers) from the interface to reduce the chances of confusing users.

That said, for this mechanism to be truly widespread, several challenges need to be addressed. First, each exchange operates independently—getting them to share blacklists involves overcoming competitive barriers and high coordination costs. Second, the accuracy and real-time performance of the blacklist directly impact user experience—false positives are problematic, and delays are also undesirable.

However, based on current trends, security upgrades are indeed accelerating. Let's take it step by step—at least someone is seriously working on this.