InstaWallet is an online Bitcoin wallet service. When I visit it for the first time, it generates a Bitcoin address that I can use to deposit to.
I’m wondering whether that address is only ever used for my account, or whether all the coins that InstaWallet receive end up in a single large wallet.
- If it’s only ever used for my account, I should be able to use blockexplorer to monitor my balance. That’s the case with MyWallet, since they don’t even have access to the address’ private key.
- On the other hand, if everything goes into a single wallet, it’s possible that other users’ withdrawals may be paid with funds from my deposit address. That’s what happens at MtGox and other exchanges.
So which is it?