Published on: 2019-03-22T16:05:13+00:00
The discussion revolves around the idea of enhancing privacy in Bitcoin transactions through the use of payjoin and "pre-fragmenting" wallets. However, it is acknowledged that this approach may not be practical for everyday users due to cost-ineffectiveness and resulting large transactions. To address privacy concerns with payjoin, a proposed solution involves automatically splitting the balance into multiple addresses with smaller amounts when a high-value bitcoin amount is received, such as $100 or more. This would prevent the recipient from being able to determine the total balance held by the sender. However, it is recognized that this feature may not be feasible for all users due to the larger and less cost-effective transactions it would entail.It is noted that small amount addresses combined with payjoin can provide real privacy to Bitcoin users, but different coin selection and utxo management strategies may be necessary depending on individual user preferences. Those who prioritize privacy can enable the auto-splitting feature in their wallet, while those who do not require privacy can disable it.A key concern regarding payjoin is the potential privacy leak when a user sends a payment from an address containing a larger amount than the intended transfer. To mitigate this issue, a suggested solution is to implement a wallet check that ensures no address contains more than a designated "safe" amount, such as 0.01 BTC or less. If an address exceeds this amount, the wallet could automatically make a self-payment to split the balance into several addresses, preventing the recipient from deducing the sender's total bitcoin balance.Overall, the discussion emphasizes the tradeoffs involved in coin selection, utxo management, and payjoin contributed input selection. It highlights the importance of considering individual needs and preferences when using a Bitcoin wallet.
Updated on: 2023-08-02T00:39:24.662438+00:00