Author: ZmnSCPxj 2020-06-10 06:29:08
Published on: 2020-06-10T06:29:08+00:00
PayJoin is a method used to improve the privacy for Bitcoin transactions. However, there are concerns on its effectiveness. The first concern is that if it is known to be a PayJoin transaction, anyone could determine the sender, recipient and the amount. This is because of the multiple interpretations of the transaction that PayJoin buys in practice. Although paying 0.01 BTC is more likely, there is still no 100% assurance. The second concern is whether it would be easy to break the privacy of transaction chains if there is just one consolidated UTXO after each PayJoin. For example, if Alice and Clark payjoin with Bob, Clark can know which one was actually Alice's. However, the issue is not that someone knows the UTXOs of themselves and the entity they payjoined with, but that someone can figure out the payjoins of others before them with the same entity. Therefore, shuffling the inputs and outputs or using BIP39 consistently is highly recommended.
Updated on: 2023-06-14T02:18:58.741135+00:00