PayJoin adoption

Summary:

In a recent email thread on the bitcoin-dev mailing list, Craig suggested that one of the barriers to greater Payjoin adoption is the need for a server endpoint on the receiving side. Payjoin is a bitcoin privacy technology that has the potential to damage the ability of blockchain surveillance to spy on bitcoin users and destroy bitcoin's fungibility. A protocol standard has already been defined and implemented by a couple of projects such as BTCPayServer, Wasabi Wallet, JoinMarket, and BlueWallet. Chris Belcher created a wiki page tracking adoption of PayJoin which is similar to the Bech32 adoption page. According to Fitti, pushing merchants towards accepting Bitcoin specifically via software like BTCPayServer, which already supports PayJoin, might be immensely helpful when Bitcoin adoption itself rises. The lack of adoption of PayJoin may be due to the lack of visibility. As per a UK bitcoin exchange owner's blog post, using entities that are paranoid about keeping their coins clean and adhering to all the regulations, your risk scores will continue to increase and without you even knowing why, your deposits will become rejected, you may be asked to supply documents or lose the coins, your account may become suspended without you having any clue what you did wrong. In order to fulfill bitcoin's dream of a permissionless money for the internet, there needs to be increased adoption of PayJoin. Craig proposed that ideally, all wallets should be able to conduct Payjoin transactions with each other without the need for a server endpoint on the receiving side. This would require a different mechanism to exchange the PSBTs, but otherwise, the specification should need no amendment. Given Payjoin is fee efficient and relatively simple to implement, it appears to hold great promise in disrupting blockchain analysis. Craig would love to see a standard that wallets can adopt to receive Payjoin transactions without a server endpoint.

Updated on: 2023-06-14T17:11:43.569797+00:00