Author: prayank at tutanota.de 2020-05-25 12:16:10
Published on: 2020-05-25T12:16:10+00:00
In an email exchange, Prayank explains to ZmnSCPxj that Peer 1 does not need to be a trusted third party. Instead, some peers involved in the system can provide liquidity for others and incentives can be a small fee. While Prayank acknowledges that JoinMarket is awesome and its payjoin will be better to achieve the same goal, he was trying to contribute and add more options for people to improve privacy on Bitcoin. By having different ways to mix, it will be harder for spy companies to analyze some of the transactions. Prayank also notes that one such setup might not make a huge difference, but a chain of such mixers will surely work better if everything is done correctly. He believes that better privacy for multisig will make it possible for a lot of ideas to be implemented on Bitcoin using different multisig setups and a combination of other things that are already available. ZmnSCPxj had previously asked Prayank to confirm his understanding of a proof of concept outlined in an article Prayank had written. In the article, Prayank proposed a protocol where a payer wants to pay a payee 0.006BTC. The payer owns 0.01 BTC in a single UTXO while a third party owns 0.05 BTC in a single UTXO. The protocol involves Payer and Third Party computing a 2-of-3 address with the public keys of Payer, Payee, and Third Party, and then individually paying their owned funds to the 2-of-3 address. After confirmation, they consume the new outputs into another transaction with equal-valued outputs, hiding who owns which coins. ZmnSCPxj confirmed that he understood the proposal and noted that JoinMarket has a superior technology that does not require a trusted third party. Instead, it requires one or more untrusted third parties to participate in signing a single transaction that does not require paying to an intermediate m-of-n address. JoinMarket allows the market taker to decide how much the equal-value outputs are and to define the address it goes to. The destination address need not be one the market taker controls, it can be to a payee.
Updated on: 2023-06-14T01:49:04.478060+00:00