It's my understanding that labeling UTXOs are not on chain but shown with wallet software. As wallets become more compatible with each other, these labels should be fairly easy to import from each other. While this makes management easier it got me thinking a bit and made me realize I don't have a clear idea of the boundaries of these labels.
  1. From a privacy standpoint, can someone see your labels if they had your pubkey to pop into wallet software?
  2. When combining UTXOs, the label gets destroyed correct? In transaction history in wallet software would that show your previous label still before combining?
  3. When splitting a UXTO, does your label stay with the remainder?
Basically I was curious to how easy it would be for an interested party to see a person's labeling.
Address labelling is purely client side wallet feature, has nothing to do with Bitcoin itself and can be implemented in different ways, depends from a wallet to wallet.
For migrating address labels between wallets there is SLIP-0015 by Trezor and BIP 329 proposal, but there isn't widespread support for these standards currently.
25 sats \ 1 reply \ @OT 6 Nov 2023
I'd like to see a standard across wallets for labeling.
I tried once with Sparrow expecting the labels to be imported after restoring. It didn't work. The UTXO's showed up but without the labels. It's possibly because it was an older version of sparrow. Should probably try it again.
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Especially since Craig Raw is driving the BIP, i would certainly expect it to work within sparrow
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