IMPLEMENTING REUSABLE PAYMENT CODES IN BITCOIN WALLETS TO IMPROVE USER PRIVACY | by heidi


 


This is very encouraging to see; the team working on the Bitcoin Development Kit (BDK) seem as if they are going to merge in support for BIP47, which would allow wallet developers who are building their wallets leveraging the BDK to easily implement reusable payment codes. This would allow bitcoin users to interact with each other in a more private way by enabling users to receive via a static payment code that does not reveal the actual address a UTXO ends up in.


To date (and to the best of my knowledge), the only popular wallet to enable BIP47 has been Samourai Wallet. Recently, there has been a surge in interest for more wallets to begin implementing this feature. Historically, BIP47 has been controversial because many developers think that if BIP47 gets wide adoption it will bloat the chain and drive fees higher due to the amount of data needed to create the payment codes via OP_RETURN. As fees have remained low for an extended period of time and bitcoiners seek out better privacy tools as authoritarian governments like Canada seem keen on using their financial systems to execute political witch hunts, it seems that many are more than comfortable with this tradeoff that comes with BIP47.



The beauty of the BDK team adding BIP47 support is that it should make it easier for a number of wallets to implement the payment codes without having to build it from scratch. It will be interesting to see how many wallets begin implementing BIP47 once support is officially merged into the BDK. And whether or not they do it quickly. At the very least, the market will get some very intriguing insight into how this feature affects the chain at scale if it gets material adoption. Best case scenario is that it significantly increases the ability for users to transact more privately using many different wallets and it doesn't affect the chain state too much due to the fee market acting as a forcing function (as fees go higher individuals become less incentivized to create transactions with OP_RETURN data included).


We will keep you freaks updated as this progresses.

تعليقات

إرسال تعليق

المشاركات الشائعة من هذه المدونة

SWISS BANK JULIUS BAER TO OFFER BITCOIN, CRYPTO SERVICES | by heidi

صورة
  Julius Baer Group, a Swiss private bank, will begin offering bitcoin and other cryptocurrency products to high-net-worth individuals. Julius Baer explained we are likely witnessing a bubble similar to the dot-com burst which birthed a new industry. The bank originally partnered with cryptocurrency bank SEBA in 2019 as the institution became more familiarized with the industry. Julius Baer Group, a private bank based in Zurich, Switzerland announced that it is creating a proprietary digital wealth management system focused on bitcoin and other cryptocurrencies exclusively tailored to high-net-worth clients. The private bank noted its goal to position itself at the intersection where bitcoin and other cryptocurrencies meet the fiat world while acknowledging the volatility of the space. Julius Baer plans to keep a watchful eye on the growing asset class, monitoring its evolution and any opportunities that may present themselves. “It could well be that at this very instant we are witness
قراءة المزيد

BITCOIN IS NOT ANTI-LEFTIST. BITCOIN IS APOLITICAL | by heidi

صورة
  Riding on Canada’s “Freedom Convoy” protests, Republican Senator Ted Cruz triumphantly took to the stage to embrace Bitcoin in a recent, highly publicized CPAC event. In a typically pro-Republican tirade, Cruz blasted his political opponents from Justin Trudeau and Elizabeth Warren to the Chinese Communist Party for opposing Bitcoin because of a desire to control the financial freedom and civil liberties of people. Of course, the Canadian trucker story played conveniently to Cruz’s right-wing leanings. The Freedom Convoy protests united around a common opposition to the Liberal Trudeau government’s vaccine mandates. It was also heavily associated with right-wing political figures such as Tamara Lich, a member of the far-right Maverick Party. The political pressure proved too much for many, even leading private crowdsourcing platform GoFundMe to cancel a fundraiser after it raised over $10 million for the truckers. BITCOIN IS APOLITICAL The only problem with Cruz’s anti-leftist spin o
قراءة المزيد

WHY PROOF-OF-WORK IS A SUPERIOR CONSENSUS MECHANISM FOR BITCOIN | BY HEIDI | BY HEIDI

صورة
  There have been countless arguments surrounding both the proof-of-work (PoW) and proof-of-stake (PoS) as a means of gaining consensus on a blockchain network. Many people have been asking themselves which one is better, and why? In this article, I'll go over some of the main benefits and drawbacks of each consensus mechanism. Let's dive in. WHAT IS PROOF-OF-WORK (POW)? Proof-of-work is a decentralized consensus mechanism first introduced by Bitcoin (BTC). We will use the Bitcoin network as an example to understand the proof-of-work consensus mechanism. The Bitcoin network essentially requires members to contribute computing power, such as graphics processing units, to solve arbitrary mathematical puzzles, and prevent anyone from gaining control or manipulating the system. Every transaction that occurs is validated before it gets added to the blockchain. Each block then gets validated by the miners, who get rewarded BTC tokens as they have put in the “work” through their proce
قراءة المزيد