Published on: 2019-04-22T17:06:43+00:00
The post introduces Payjoin2swap as a method to implement payjoin using Lightning Network operations. The author explains that payjoin allows two parties to exchange Bitcoin value without revealing identifying information, breaking the common-input heuristic used by blockchain analysts. However, payjoin is primarily designed for payments rather than hodling. To address this issue, the article suggests that hodlers can still utilize payjoin by using bitcoins in a payjoin to buy bitcoins of similar value.The article then introduces Payjoin2swap, a protocol that enables participants to exchange Bitcoin value without revealing identifying information. In a Payjoin2swap, two transactions occur at about the same time on the blockchain, appearing to pay two different addresses with change outputs. Participants in Payjoin2swap need to own two UTXOs onchain, and the values do not need to be equal. The article provides examples of how Payjoin2swap works, including exchanging Bitcoin value between Alice and Bob and paying Carol without reducing the privacy of mix participants.Participants in Payjoin2swap must agree on various parameters, such as the amount to be swapped, safe confirmation depth for anchoring, future block heights, and the exchange of private keys. To ensure plausible transactions, one output should always be larger than the sum of all inputs except the smallest input. Additional rules can be imposed if both parties have two UTXOs each.The article also discusses Linking and Overlinking Payjoin2swap, which involves monitoring the mempool for specific transaction types and computing an "apparent swap value" from the difference of an input and the lower input or 0 if one-output. This can potentially link unrelated transactions.Overall, Payjoin2swap is presented as a privacy-enhancing protocol that allows two parties to swap their bitcoin without revealing any information about their transactions.
Updated on: 2023-08-02T00:44:21.360585+00:00