I don't think we will ever have on chain privacy on bitcoin, it is at odds with getutxoset.
What we need is great second layer decentralized privacy solutions (like JoinMarkets), and hopefully some new onchain primitives would help too...
Discussion
Obusaction on higher layers is the way
Idk man some of the crazy shit covenants enable could very well do it.
Strong agree.
On chain privacy isn't even desirable.
We agree. You should trust NVK on this, he knows what he's talking about.
The most important barrier to onchain privacy is KYC/AML. Once more of us earn in sats or buy our sats peer to peer, the situation will be much better.
No. There is no onchain privacy today, it is for everyone to see how much, where from and where to.
That is in spite of AML/KYC.
But it makes AML/KYC a lot more damaging than it had to be.
That would be like saying no problem Signal messages are not encrypted end-to-end, no, the problem is the phone numbers are KYC'd.
Incorrect. The problem would be the messages are not secure.
My point is that the transparency of the timechain is not as damaging when your coins are not attached to your identity. Think of Satoshi, he has the largest onchain footprint of anyone, yet he still has pretty good privacy.
What is the best, simplest node to buy and use with Sparrow?
Thoughts on payjoin?
Not a silver bullet of course but could certainly help no?
Privacy means only selectively revealing yourself to the world. On-chain transactions require absolute transparency and clarity for everyone to validate them. The two are incompatible.
Well, there's the rub...they'll just outlaw those layer 2s (like they do now) and BTC will effectively become a CBDC--trackable and traceable.
There's got to be a better solution than layer 2s....
PayJoin
Pardon my ignorance, but is there a way to encrypt "getutxoset" such that only the receiver knows the UTXOs per address? I know SHA256 encrypts the keys, but is it possible to add
encryption/instructions via OP_Return or otherwise? sort of like how Inscriptions/Runes/DIDs work, using arbitrary data to view the information.
(I am not a programmer, so apologies if this doesn't make a lick of sense)