BTCPay Integrates PayJoin To Offer Added Privacy for Bitcoin Transactions
BTCPay, an open-source Bitcoin payment platform has joined hands with PayJoin to offer an added layer of privacy to the Bitcoin transactions on its platform.
Payjoin is among the latest privacy tools available in the market and is believed to offer better privacy protection than the popular alternative Coinjoin. BTCPay is quite popular among merchants who accept numerous Bitcoin and Lightning payments through this open-source tool.
BTCPay’s integration of PayJoin might give the privacy tool much-needed recognization from a larger population and also lead to awareness around the use of privacy technology as cryptocurrencies were intended to be. The initial version with an integrated PayJoin tool was launched on Thursday.
Andrew Camilleri, one of the lead developers on BTCPay’s platform said:
“Our mission is financial sovereignty for everyone and PayJoin is a great tool to help break blockchain analysis heuristics and achieve that. Since BTCPay is so widely used, it should help jumpstart usage.”
The PayJoin integration and development work is being funded Blockstream and Blockstream’s Chief Strategy Officer Samson Mow is a firm believer in privacy who commented on the integration of PayJoin saying:
“We’re hoping to improve the privacy and fungibility of bitcoin by accelerating the adoption of P2EP. If enough wallets and businesses support P2EP, it could provide the critical mass needed to achieve widespread financial privacy.”
Introducing BTCPay Server 220.127.116.11 “Block 626048”- our biggest release to date. https://t.co/Pegzlpwhdv
— BTCPay Server (@BtcpayServer) April 16, 2020
How Private Are These Privacy Tools?
A majority of these privacy tools just mix a range of Bitcoin transactions together from the point it was initiated to the final wallet, where they are destined for, in order to make it hard to detect the initial transaction point.
Tools like CoinJoin are being actively used by privacy wallets such as Wasabi. However, if a user sends any transaction from their wallet to a wasabi wallet it can be easily seen on the Blockchain, which defeats the purpose of mixing several transactions together.
On the other hand, PayJoin promises to overcome this issue as the transaction into the PayJoin doesn’t pool multiple transactions, but only the transactions of the sender and receiver which results in the final transaction looking like any other transaction on the Bitcoin blockchain.
Due to the use of privacy tools such as CoinJoin and Wasabi, many blockchain analytical firms have managed to find patterns in these mixing tools which help them in finding out the real owner of those transactions.
Camilleri said that PayJoin would be the perfect privacy tool every privacy centered individual has been looking for as it will not only keep one’s transaction private but would also ensure that the growing crop of market monitoring tools won’t be able to detect it.
However, there is just one drawback as it requires both the sender and the receiver to be online.
PayJoin was created back in 2018, but with very limited use and integration into wallets. One of the main reasons being highlighted is that both the sender and receiver wallet must support the tool.
Project Snowball is trying to resolve this issue by creating codes; making it easier to integrate PayJoin to any Bitcoin wallet. The involvement of Blockstream is also helping boost this procedure. Mow noted:
“The next interesting step would be for an exchange to support P2EP.
Ultimately we need to make a choice on what kind of world we want to live in, one where there is financial privacy or one where there isn’t.
Without privacy and fungibility, money can be used as a tool for oppression or financial surveillance. Bitcoin is the future of money and the future of money shouldn’t be Orwellian.”
Published at Fri, 17 Apr 2020 21:15:15 +0000 BTCPay Integrates PayJoin To Offer Added Privacy for Bitcoin Transactions