When XPUB's for Liquid?
121 sats \ 3 comments \ @moel 27 Jul 2022 bitcoin
Right now, it's possible for everyone who knows your Bitcoin address, to see when and how much, you receive on that Address.
To solve this, you can instead of giving your wallet "address", give a trusted party your XPUB, so they can generate a fresh new wallet address for you that you can receive funds in.
In Liquid, because it uses CT (confidential transactions) the amounts are hidden on-chain. But still, one could track your L-BTC wallet address and see when/how often you receive something.
A short term solution is to send transactions to yourself from another L-BTC wallet to hide true payment patterns, but a better solution would be to have something like XPUB support for L-BTC.
Any suggestions or comments on this?
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42 sats \ 1 reply \ @sb 27 Jul 2022
In addition to generating new addresses, everyone who has access to your XPUB has access to the transaction history from your entire collection of used wallet addresses. Instead of losing privacy on a single address, you'd be giving up privacy on ALL your addresses if you share your XPUB with random people. Not sure how this solves the problem.
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0 sats \ 0 replies \ @bitgould 28 Jul 2022
Because HD pubkeys are derived from a tree you want to give a counterparty only a branch xpub, not the root one. That way they only know about addresses pertinent to them, not the whole heirarchy. See the multiple separate "wallet chains" in the diagram from the spec: https://github.com/bitcoin/bips/blob/master/bip-0032.mediawiki#master-key-generation
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0 sats \ 0 replies \ @TheBTCManual 27 Jul 2022
I think a better solution would be stealth addresses
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