Author: Peter 2022-03-01 17:31:53
Published on: 2022-03-01T17:31:53+00:00
The OpenBitcoinPrivacyProject has proposed a newer version of BIP47, v3 and v4 that addresses some issues from the previous version. The new version eliminates the toxic change issue by having the notification from Alice to Bob as a transaction from Alice to Alice as a bare 1 of 3 multisig, with the other two pubkeys representing Alice's payment code and Bob's payment identifier. This comes with a one-time overhead of 64 bytes for the two pubkeys, which would be amortized over the lifetime of the Alice/Bob relationship. In addition, the first economic payment from Alice to Bob can be included along with the notification transaction. Payment codes are recoverable from the bip32 seed without requiring extra backups. This new version is already in production with Samourai wallet. BIP47 v3 allows Alice to receive Bob's address without exposing her IP/identity to Charlie, who can watch Alice receive the payment code material from Bob without knowing if Alice acted by sending a payment to Bob. An xpub doesn't accomplish this because if you have your xpub in a crowdfunding platform, the platform or anyone who hacks it can identify your payments. With the payment code, you can associate yourself publicly with your payment code, and no one (who is not the sender) will know if you received funds, as your payment code is not visible on the blockchain.
Updated on: 2023-06-15T17:25:10.354903+00:00