Author: Bryan Bishop 2022-06-27 20:20:45
Published on: 2022-06-27T20:20:45+00:00
In a bitcoin-dev mailing list, Alfred Hodler proposed a way to make notification transactions more private. He suggests that notification transactions will no longer leave a footprint on the blockchain and instead, will just be a single OP_RETURN containing a value that only Alice and Bob can calculate. If Alice's notification transaction uses UTXOs not associated with her identity, there is never a footprint showing that either she or Bob are using private payments. However, if Alice uses tainted coins, only she is exposed as a user of Private Payments but Bob still isn't. Bryan, another participant in the mailing list, suggested an alternative way to maintain privacy while making notification transactions. He suggested that instead of using OP_RETURN, Alice could publish on a Tor hidden service that other wallets check. This way, Alice wouldn't have to expose on-chain that she is a sender of a private payment.
Updated on: 2023-06-15T22:18:22.402914+00:00