Author: ZmnSCPxj 2020-05-01 07:17:19
Published on: 2020-05-01T07:17:19+00:00
The article discusses the use of CoinSwap as a method of improving privacy in Bitcoin transactions. CoinSwap involves two parties, Alice and Bob, exchanging temporary private keys to effectively merge their coins in bilateral control. This reduces the need for mixdepths and constraints on coin merging, but there are still privacy concerns such as chain analysis linking coins through self-transfers and leakage of information about payment intentions to the maker.To address these privacy concerns, proposed solutions include adding randomness to payment amounts and requiring Alice to always specify a payment amount. Additionally, combining CoinSwap with PayJoin or CoinJoinXT is being explored to further improve privacy. The article also suggests that using standardized swap amounts is wiser due to larger anonymity sets.The article mentions the possibility of Alice and Bob waiting for opportunities to change the claiming transaction after private key turnover. While this can potentially improve blockchain space for popular makers, it increases the complication of implementation. If Alice wants to multipay, she could sum up all the outgoing values and specify the sum to Bob.Privacy relies on false positives, which can make transactions received by Alice have a big crowd to hide in. The example of Alice sending 1.2 BTC to Carol via a CoinSwap with maker Bob is given, highlighting the importance of using standardized swap amounts. Overall, while CoinSwap has its limitations, it is a promising method for improving privacy in Bitcoin transactions.
Updated on: 2023-06-14T00:49:45.822099+00:00