Author: Jeremy Spilman 2014-01-08 10:20:57
Published on: 2014-01-08T10:20:57+00:00
The context is a conversation between two individuals discussing Elliptic curve Diffie-Hellman (ECDH) and its use in generating a shared secret to recover funds. The payee publishes their public key 'Q', and the payer generates a keypair with a private key 'e' and a public key 'P'. The shared secret, S = eQ, is calculated by the payer, while the payee calculates it as S = dP. This shared secret can be used to derive a scriptPubKey using BIP32-style derivation to create Q'. A downside to this approach is that the private key has to be held unencrypted in memory to identify new payments. Therefore, stealth-addresses may not be suitable for receiving eCommerce payments. The nonce keypair is included in transactions in an additional zero-valued output: RETURN.
Updated on: 2023-06-07T23:38:08.393071+00:00