“Instead of using notification transactions to exchange payment codes between merchants and customers, payment codes could be exchanged via Nostr. As opposed to other communication methods, Nostr is suitable for the exchange of BIP47 payment codes as no central authority exists to potentially censor the exchange of messages. At the same time, all direct messages on Nostr are encrypted by default, eliminating the need to compute shared secrets. By making use of BIP47 via Nostr, users can avoid the creation of UTXO set bloat via unspendable outputs and eliminate the correlation of recurring versus non-recurring payments as well as the publication of customer bases through the avoidance of toxic change and the re-use of notification addresses.”
Discussion
“Note: Storing the entire current UTXO set for Bitcoin nodes may potentially be eliminated in the future via the implementation of UTreeXO, which shifts the burden of proving that a transaction spends a valid UTXO to the owner of the UTXO, reducing the storage requirements from gigabytes to kilobytes.”
“Wide adoption of LNURL would … be a detriment to the pseudonymity of the Lightning Network. Instead of using a web server as the endpoint for LNURL, users could use Nostr keys as endpoints for LNURL transactions to conceal their identities.”
“In NostrMarkets, customers can subscribe to a merchant's public key to fetch products from relays instead of accessing a merchant’s site via a webshop. This increases the censorship resistance of online shops, as merchants are not dependent on seizable websites — rather, a merchant’s shop is hosted with all relays the shop sets up to communicate with. Even if the merchant's server were to be seized, its shop could easily be set up at a different location, as all products are stored with relays on the Nostr network. NostrMarkets handles order and payment coordination via encrypted Nostr direct messages, while payments are facilitated through the Lightning Network.”