Published on: 2022-03-02T04:45:58+00:00
In a conversation between Peter and Prayank, Prayank introduces a newer version (v3 and v4) of BIP47, which has been proposed on GitHub. This version aims to solve the toxic change issue and seems like an improvement. Prayank explains that using an xpub does not provide anonymity because anyone who has access to the xpub, including platforms or hackers, can identify one's payments. However, using a payment code allows for public association without revealing the payment identifier on the blockchain, making it difficult for others to determine if funds have been received. Prayank also suggests a rust library that can assist application developers in implementing BIP47 into different bitcoin projects.The OpenBitcoinPrivacyProject has proposed a newer version of BIP47, v3 and v4, which addresses certain issues present in the previous version. The new version eliminates the toxic change issue by modifying the notification from Alice to Bob as a transaction from Alice to herself, functioning as a bare 1 of 3 multisig. Two pubkeys represent Alice's payment code and Bob's payment identifier. This change incurs a one-time overhead of 64 bytes for the two pubkeys, which is spread out over the lifespan of the relationship between Alice and Bob. Additionally, the first economic payment from Alice to Bob can be included with the notification transaction. Payment codes can be recovered from the bip32 seed without requiring extra backups. The new version is already being used in production with Samourai wallet. BIP47 v3 enables Alice to receive Bob's address without exposing her IP/identity to Charlie. Charlie can observe Alice receiving the payment code material from Bob but cannot determine if Alice proceeded to make a payment to Bob. Unlike an xpub, this method ensures privacy even if the xpub is shared with a crowdfunding platform, as the platform or any potential hackers cannot identify the payments made by Alice. By using the payment code, individuals can publicly associate themselves with their payment code without revealing if they have received funds, as the payment code is not visible on the blockchain.Twitter has seen discussions about BIP47 and its potential to enhance privacy. However, some developers argue that it merely adds spam to the Bitcoin network without providing any actual improvements. Additionally, the only existing implementation of BIP47 is Paynym, a centralized payment code directory managed by Samourai wallet, raising concerns regarding privacy and security. To address these concerns, the author suggests utilizing TXT records and domains. They present a proof of concept using GNS (GNU Name Service) to create a payment code for Alice, adding it as a TXT record with an expiry date, and verifying it. The author also proposes using `gnunet-publish` as a replacement for notification transactions. These solutions could potentially help users avoid sharing their bitcoin addresses on social media platforms when receiving donations. In addition to these suggestions, the author provides links to related resources, including a Q&A on accepting donations correctly and a new proposal addressing privacy concerns.
Updated on: 2023-08-02T05:45:48.056713+00:00