Author: Tony Churyumoff 2016-08-08 16:03:28
Published on: 2016-08-08T16:03:28+00:00
The proposed design is to hide the entire inputs and outputs, and publish only the hash of inputs and outputs in the blockchain. The plaintext of inputs and outputs is sent directly to the payee via a private message, and never goes into the blockchain. To avoid rapid growth of ownership history, each private transaction must have exactly one input. Thus, forbidding any coin merges but still allowing coin splits. With fixed denominations and one input per transaction, coin histories still grow, but only linearly. To issue the new private coin, one can burn regular BTC by sending it to one of several unspendable bitcoin addresses, one address per denomination. BBC would be transferred from user to user by creating a private transaction, which consists of one input and several outputs; storing the hash of the transaction and the spend proof of the consumed output into the blockchain in an OP_RETURN (the sender pays the corresponding fees in regular BTC); sending the transaction, together with the history leading to its input, directly to the payee over a private communication channel. To facilitate exchange of private transaction data, the bitcoin network protocol can be extended with a new message type. No hard or soft fork is required, BBC is just a separate privacy preserving currency on top of bitcoin blockchain, and the same private keys and addresses are used for both BBC and the base currency BTC.
Updated on: 2023-06-11T19:25:36.749633+00:00