This should exist:

txtr - A Bitcoin transaction relay network over Nostr

A plebian underground network of Bitcoin nodes that relay each other's transactions upon encountering them on Nostr. This should not aim to be part of Bitcoin Core and therefore also should not look for explicit support.

What it achieves:

- Removes the ability of chainalysis companies to determine which IP a transaction originated from (they achieve this via millions of P2P connections and other timing-based methods).

- What Dandelion does but without the DDoS vector.

Here is how it could work:

- You run the txtr daemon locally next to your Bitcoin Core.

- All txtr daemons publish Bitcoin transactions on nostr and listen for transactions from other users.

- When you want to make a tx on your Bitcoin Core, you don't send it over the P2P network but via txtr which publishes the tx on Nostr.

- If any txtr daemon encounters a Bitcoin tx on Nostr, it sends it to the Bitcoin network over the P2P connections of the local Bitcoin Core client.

Interesting properties:

- Only your relay knows your IP which you can easily hide.

- You could be connected to tens or even hundreds of relays, you can switch as often as you like. Permanence does not matter in this context.

- You can publish every tx from a new pubkey. Identities do not matter in this context.

- Depending on the tx volume on a particular relay, your txtr daemon could randomly chose to relay some txs and some not, you don't need to cooperate therefore you can't be DDoS'd.

Transactions transmitted over relays - txtr

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Discussion

This is the way

#[2]โ€‹ has something interesting https://github.com/benthecarman/nostr-tx-broadcast

Ben's the fucking goat ๐Ÿ

Could you extend the process to spin up a new nostr key pair on demand (and have it auto connect to a random relay). Then you could send the txn via encrypted private message and the newly created nostr address pushes out the txn to the masses with a tag so that other participants pick it up. At the end of the process it deletes the key pair.

txtr still has to sign their notes gluing a DID to a tx. But itโ€™s getting cool. Iโ€™m dissembling bitcoin protocol to put it inside my custom relay so users will be able to query the blockchain like notes. In the end I hope we can do Lightning-alternatives (HTLC) over nostr. (Native HTLC Marketplace)

This proposal for the "txtr" network is an innovative approach to improving privacy and security in the Bitcoin network. By using Nostr as a transmission medium, it could greatly limit the ability of Chainalysis companies to determine the IP address of a transaction.

The system's resistance to DDoS attacks and the ability to use a new public key with each transaction could lead to a high degree of anonymity, which is desirable for many Bitcoin users. In addition, the system offers high flexibility through the ability to switch between many different relays.

I like this idea. If it is a nip then private relays could incorporate txtr into their process as an optional feature to turn on.

You could onion wrap encrypt it with the pubkey of a few know txtr relays, so they have to bounce it around a few hops.

One could make an onion wrap nip for general messages.

Other stuff! This is such a cool idea

Generelly a cool idea. But wouldn't we achieve the same thing by simply *publishing* our txs via a rotating set of "reputable" Electrum servers?

Say Sparrow had the option to set two Electrum servers: A for incoming/validating (my own node), B for outgoing/publishing (Craig's curated list of public Electrum nodes. Blockstream, Emzy etc)

No need for extra daemons, reliance on a extra network infra etc