Author: Christophe Biocca 2014-01-18 20:25:36
Published on: 2014-01-18T20:25:36+00:00
The sender pays the fees for putting extra data into the blockchain, which is intended to improve privacy for static addresses such as donation links on websites. However, this mechanism may not be used as much as BIP0032 or the payment protocol due to its increased fees. Those who prioritize lowest cost and maximum convenience already use SPV nodes, so their resource usage will not be affected. A high-level question was raised about complicated mechanisms to keep coin flows private, asking who pays for it. The concern is that it will double the amount of data needed per address, further centralizing 'full' nodes. If socializing the cost of privacy is Bitcoin's goal, then transparency advocate Troy suggests launching a 'transparencycoin' with a modified code that explicitly ALWAYS re-uses addresses. He argues that this would be more distributed and have about half the average transaction cost of Bitcoin, because most people don't care about privacy if they get cheap or free services.
Updated on: 2023-06-08T00:10:05.218044+00:00