Bitcoin's privacy features have been under fire by critics since early 2013.
While the protocol remains technically robust and mathematically secure, a loophole allows blockchain analysts and cryptographers to link transactional behavior with users, leading to some term Bitcoin as "Pseudonymous."
Chris Belcher, an independent developer whose Github's history shows hundreds of commits across various Bitcoin-centric applications, released his new implementation proposal for CoinSwap last week.
The Bitcoin developer noted CoinSwap holds "Great promise," and is the "Next step for on-chain bitcoin privacy."
Belcher uses a multi-party mechanism for avoiding two-party transactions, such that Bitcoins moved from a user's wallet will be "Routed" through several other user wallets before reaching the recipient.
All intermediaries will act as "Market makers," only knowing what the previous and the next Bitcoin address is.
He notes the implementation could also be used as a "Bitcoin mixing app," but wallet providers could also implement the system and increase privacy for their users.
Belcher notes the software could be a standalone 'mixing' application like Wasabi or rather a library that existing wallet users can implement to improve Bitcoin's privacy.
A variety of privacy solutions is imperative for Bitcoin's long-term health.
One is presenting better liquidity for users, with Belcher stating "It's hard to imagine the Lightning Network will ever reliably" route a 200 Bitcoin transfer to any node in the Bitcoin protocol.
This Bitcoin developer is using "swaps" to solve BTC's long-running "pseudonymous" privacy issue
gepubliceerd op Jun 1, 2020
by Cryptoslate | gepubliceerd op Coinage
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