Author: alicexbt 2022-08-05 14:44:52
Published on: 2022-08-05T14:44:52+00:00
The email is addressed to Bitcoin developers and discusses the concept of trading replacement transactions for privacy. The email includes a proposal by Alice to implement this idea, which involves creating two transactions (tx1 and tx2) with specific inputs and outputs. Bob also has his own set of transactions, and Carol creates an API to manage trades using a 2 of 3 multisig system. Alice and Bob create orders for replacement, either matched automatically or manually by Bob accepting the offer. The 2 of 3 multisig is created with Alice, Bob, and Carol keys, and Bob locks 0.01 BTC into it and shares outputs e2 and f2 with Alice. Alice signs tx2 and shares it with Bob. Alice then locks 0.011 BTC into the multisig and shares outputs b2 and c2 with Bob. Bob signs tx2 and shares it with Alice. Both replacement transactions can be broadcasted, with funds released from the multisig with a transaction having three outputs (one to pay a fee that goes to Carol). Positives include privacy, but there are also negatives such as extra fees and the need to lock bitcoin with the same amount used in tx1. Additionally, amounts could still be used to link transactions in some cases, with Carol and other peers knowing the details. The email is sent securely with Proton Mail.
Updated on: 2023-05-22T20:58:43.825266+00:00