Kruw

I activated round parallelization on my coinjoin coordinator node. Time to buy more cheap block space.

I'm leaking The Black Hole prototype ruleset. I present it at Tabconf on Oct 15th.

Description:

The protocol uses JoinMarket's liquidity order book & fidelity bond mechanisms, but it creates coinjoins that mimic WabiSabi's on chain footprint.

Design Overview:

Coinjoin transactions that create outputs with matching values generate ephemeral tokens called “anonymity points”. Points are auctioned for sats, and the swap occurs inside a coinjoin transaction. Participants can receive points when they enter the coinjoin pool, spend from the pool, or wait inside the pool.

• Makers are liquidity providers who passively mint and sell points
• Takers are searchers who batch liquidity to mint points
• Cooperators are remixers who mint points with their own liquidity

Point Rules:

A transaction’s point value is determined by the sum of all inputs that were matched in their origin transactions and the sum of all outputs that are matched in the current transaction. If the number of matched inputs and the number of matched outputs in a transaction are not equal to each other, the final point value is set to the lower number.

Maker/Taker Rules:

Takers must pay 57 vbytes each for up to 3 matched inputs per maker Takers must pay 43 vbytes for each matched output Takers must pay 100 vbytes for each unmatched output (43 to miners, 57 to the Maker who received it)

Makers must pay 57 vbytes to add unmatched inputs Makers must pay 43 vbytes to add unmatched outputs Makers can’t submit two inputs each worth more than the Taker’s value target Makers can’t submit two inputs from the same ancestor transaction Makers may lock coins in fidelity bonds to improve their reputation for Taker selection

Makers post an offer with a buying rate for points and a selling rate for points Makers list the maximum amount of liquidity they can provide using their 3 largest matched inputs from unique transactions Makers points from each origin transaction are weighted by that input’s contribution towards the Taker’s value target – Origin transactions with the least points have their value counted first If the Taker’s new transaction has more points than the Maker’s origin transactions, the Maker pays sats If the Maker’s origin transactions have more points than the Taker’s new transaction, the Maker earns sats Payments for points transferred atomically by adding them to one of the coinjoin outputs owned by the winner

Cooperator Rules:

Cooperators who pay for their own mining fees can join coordinated WabiSabi or ZeroLink rounds. WabiSabi is flexible: It accepts any arbitrary value for inputs and outputs. ZeroLink is strict: rounds only accept a single standard denomination for inputs and only allows creation of a specific denomination output (input value – mining fee).

Whenever mining fee rates are low enough, Cooperators are incentivized to remix UTXOs in their wallets with low points into larger rounds. These minted points can be resold later as a Maker.

Do you dare to live forever? Follow

's new health science project:

I applied a huge backlog of server upgrades on my coordinator. The performance/stability improvements increased the number of successful coinjoin transactions per day by 60%

I tried to tip my waitress at the breakfast diner with Bitcoin, and now she won't talk to me anymore.

Fighting the urge to post screenshots of The Black Hole coinjoin prototype.

Soon. Very soon.

WE'RE IN! Thanks to this 10m burn transaction on the Knots chain, all

users who participated in coinjoins after block height 961,643 have inherited replay protection. You can now safely dump your shitcoins.

DON'T TRUST - VERIFY! Here is the audit path for you to confirm that the replay protection actually activated:

The final coinjoin tx that confirmed on both chains is f046581f06d353211cfcbbff0681a4f61ac33a8ffb33fc70719cd3b855818bc9

bc1pjhnedggvm9czj9lhdpd78hcxt56s0y2hz7vx8srt8zlfxy2lhees4t7ruu was spent and already confirmed on both chains.

Replay protection ancestor coinjoin tx on Core: bbd66083ac8330dde6509ad54a021082f33f15564d831c94b32ae08a7eb63586

Replay protection burn tx on Knots: 2ad1dc24a493b1f5c00d7cf29582a2b54bf6f57ca2d7b0caf8475067580edb8f

I WILL BUY YOUR KNOTS SHITCOINS!

Rate: 500k sats on the core chain per 1.0 BDashJrb coins (1:200)

You MUST coinjoin your UTXOs on the Core chain for replay protection first. As soon as my 10m burn transaction gets mined on Knots, all coinjoin txs from that block height will retroactively gain replay protection: 2ad1dc24a493b1f5c00d7cf29582a2b54bf6f57ca2d7b0caf8475067580edb8f

THE BLACK HOLE: An incentive compatible loop constructed from coinjoin transactions that pays liquidity providers and never terminates privacy for any participant. Whales and high time preference spenders fund the fees to churn anonymous coins through the machine. Merchants and low time preference users reduce their fees (or profit).

Depth 1 is the user's wallet entry point, contains coins that should never be spent: New coins sent to a fresh BIP32 address, silent coins sent to a SP donation address, and attack coins which were sent to a used address

Depth 2 is the wallet respawn point, contains pre-ZL JMM change outputs, any PJ output, and any WS change output

Depth 3 is THE BLACK HOLE entry point, contains ZL eligible coins (Feeder outputs, WS equal outputs, and ZL remixes)

Depth 4 contains Blackholed coins for JM remixing (equal size), which get consumed as inputs for PJ receivers, may randomly be sent back to Depth 2 or Depth 3

Depth 5 contains Blackholed coins for JM remixing (change outputs), may randomly be sent back to Depth 2

Depth 6 contains Blackholed Joinmarket taker coins that never get offered, exit point for large value coins, may randomly be sent back to Depth 2 or 3 or terminated by sending to the user's cold storage (It's so over)

All users intersect with WS (PJ max privacy fallback), PJ sender (WS low cost fallback), PJ receiver (positive incentives), JM maker (positive incentives). The only flows that increase the user's end cost are JM takers (whales), Payjoin senders (low time preference), ZL remixers (perfect block space efficiency). WabiSabi participants who split their outputs into standard denominations pay ~6x more in fees, but it is still possible to opt out of equal denomination creation to coinjoin at a reduced marginal cost with increased marginal privacy compared to solo payments.

One set of users provides the mining fee to push funds through the entire system and subsidize another set of users. Default behaviors for all users will randomize and overlap and intersect at THE BLACK HOLE, so any coinjoin participant could be any other coinjoin participant. Every user has the incentive to receive Payjoins and remix as a Feeder or Maker. ZL remixers can probably get a micro maker/taker model inside that system.

This operating system passively destroys every UTXO that is not a standard WabiSabi denomination if the user waits long enough. Attack coins and Dust UTXOs can be discarded to miners below a certain amount. The gears in the machine rotate silently and perpetually, all orbiting coins collapse into the center.

Legend: WSC (WabiSabi Consolidation), WSP (WabiSabi Batched Payment), WSR (WabiSabi Remix), WSCT (WabiSabi Cut-Through, a single tx that efficiently combines WSC and WSP) ZL (ZeroLink, always a remix), JMT (JoinMarket Taker, optionally reveals CIOH), JMM (JoinMarket Maker, a remix that reveals CIOH and creates toxic change), JMF (JoinMarket Feeder, a new coinjoin type that Takers use to rebalance standard denominations), PJS (Payjoin Sender) and PJR (Payjoin Receiver), a confidential payment combining inputs of senders and receivers of supporting wallets

Indestructible.

New shorthand for Cross Input Signature Aggregation's intended functionality: Just call it "Coinjoin Signature Aggregation", or CSA. Everyone will always be incentivized to coinjoin, make the acronym a cut-through.

We were dealt the winning hand. All in.

If there was a Mount Rushmore for Bitcoin privacy devs, 3 out of the 4 heads would be

making different faces.

The Four Horsemen: A unified spec for Bitcoin coinjoin protocols, combining every existing on chain technology into one incentive compatible, block space efficient, flexible, decentralized implementation.

https://stacker.news/items/1526793

Core vs Luke Dashjr vs Paul Sztorc vs Michael Saylor: https://blossom.yakihonne.com/a2abffb955d1a983cd2847511bd12954f1dff945af5d4ace62d0d0934ba46cd6.jpeg

Educational post about how payjoins and silent payments suck, and how coinjoins are awesome: https://delvingbitcoin.org/t/state-of-the-transaction-privacy-work-in-bitcoin/2622/7

Open sourcing this meme.

Someone paid 483k sats in mining fees for a 31k sat output at 6 sat/vbyte 😓

https://mempool.space/tx/9f3ab719ce9e82acd1b3e2470e85960f29cd2f4c967ce450ef0c76c9c28e338b

People will forgive you for being wrong, but they will never forgive you for being right.

This week, Wasabi had a new developer contribute code and a new coordinator create coinjoins. Lfg.