draft proposal: change forwarding (improved fungibility through wallet interoperability)



Summary:

Yuval has proposed a method which is based on BIP32 and optional BIP44 to improve fungibility and on-chain privacy with wallets that don't prioritize these factors. The proposal requires minimal changes to safely forward change outputs to more specialized wallets. Yuval intends for this proposal to complement more comprehensive proposals such as BIP79. It should be noted that the draft is incomplete, and there are open questions about the particular format to use. The current proposal includes two viable options, and two more are included for completeness. Although Yuval has a slight preference for the first option, they remain undecided given the tradeoffs, and so they are writing to the mailing list to solicit inputs/criticism. Yuval thanks SirMeow, Adam Ficsor, and Adam Gibson for reviewing earlier versions of the proposal and providing valuable feedback and suggestions.


Updated on: 2023-06-13T15:11:39.968796+00:00