That's not why Joe Junior's first C program has a linked list in it. But it might well be why Joe Senior's masterpiece Rust program has a linked list in it. On the other hand, depending on the algorithm being implemented, it may only be singly linked, and the XOR trick doesn't apply.
Rust's alloc (the library you get if you have an allocator, but not necessarily the entire OS environment) does provide a linked list if you want one, and this would be a reasonable choice in this case whereas it warns you that you probably wanted Vec if you're not sure which data structure you need.
Or you can go Deep on memory models and try to apply Ralf's Xor Provenance Hack and claim that, well, provenance is stored in bytes, but it doesn't have to be a pointer-sized range of bytes, so let me have some horrible way to express "the high half has provenance 1, the low half has provenance 2" and handwave magic problem solved.
This is of course horrible and also not at all a portable notion to CHERI which tracks provenance at the granularity of "aligned pointer-sized region of memory". But hey, if it helps you sleep at night.
I'm happy to sacrific xoring pointers, the same way I wouldn't use some "cunning trick" to build my house with half as many nails, at the risk that any minor mistake installing any of those nails would lead to my house failing over.
The idea is this lets you iterate up and down the linked list, as if you have prev, you can do "neighbours xor prev" to get next, and "neighbours xor next" to get prev.
However, while in that particular program that did create a notable speed improvement and memory saving, I think it's probably worth sacrificing to the greater good.