Author: Jonas Schnelli 2016-03-26 09:01:36
Published on: 2016-03-26T09:01:36+00:00
The discussion revolves around the use of peer-to-peer (p2p) connections in Bitcoin wallets, particularly those used by Simplified Payment Verification (SPV) clients. The use of p2p connections is seen as a solution to improve privacy and traffic analysis resistance, as well as to increase security by allowing wallet-only-peers to slowly validate the blockchain and create a UTXO set. The speaker recommends improving communication and interface possibilities between wallet-nodes and full-validation-nodes to prevent centralization of end-user wallets and the risks that come with it. The discussion on encryption focuses on the encryption BIP, which requires encrypting the complete traffic. Chacha20-Poly1305 is recommended as an encryption AEAD, but completely avoiding side channel data analysis would require inefficient constant time encrypted datastreams. The encryption BIP allows combining multiple plaintext messages in one encrypted message and could be extended by random padding of encrypted messages or other techniques to reduce side channel analysis.
Updated on: 2023-06-11T04:35:02.103307+00:00