Author: Mr. Lee Chiffre 2020-06-10 04:01:44
Published on: 2020-06-10T04:01:44+00:00
Payjoin is a method that allows multiple parties to combine their bitcoin transactions into one, in order to improve privacy and make it more difficult for anyone to determine who sent or received what amount. However, there are concerns about its effectiveness in practice. One concern is that if payjoin becomes widely used and people only have a single UTXO (unspent transaction output), it could be easy to identify the sender, recipient, and amount of each transaction. Even if someone combines another input, it may still be obvious who paid whom. Another concern is that if there is only one consolidated UTXO after each payjoin, it could potentially break the privacy of transaction chains. For example, if Alice pays Bob through payjoin, and later Clark pays Bob through payjoin as well, Clark could potentially figure out which UTXO was actually Bob's and therefore know which one was Alice's. This could allow someone to decloak the payjoins before them and potentially trace back the entire transaction chain. It's unclear how far back someone could go in tracing the transaction chain, but this could be a significant issue for maintaining privacy. While payjoin has the potential to improve privacy, it may not be foolproof and there are still concerns to be addressed.
Updated on: 2023-05-20T23:23:50.325652+00:00