Create a BIP to implement Confidential Transactions in Bitcoin Core



Summary:

A cryptocurrency's confidentiality can be destroyed by quantum computers, but its effects could be mitigated by splitting the blockchain into a public part and a confidential-transactions part. In this way, the amount of total money in the confidential part is the sum of all lockboxes. If there was a cryptographic break in the CT rangeproof protocol, then the first owner of a quantum computer can claim all the lockboxes but the damage is bounded to only those UTXOs in the CT part. The transaction structure from payer to payee remains visible on-chain under MimbleWimble, which helps reduce the ability to see historical data. However, Scriptless Script should be sufficient for Lightning Network.


Updated on: 2023-06-13T16:39:03.204840+00:00