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Topic
Board Development & Technical Discussion
Merits 2 from 2 users
Re: [Megathread] Bitcoin Layer 1 Privacy - concepts, ideas, research, discussion
by
tromp
on 23/08/2022, 14:49:20 UTC
⭐ Merited by n0nce (1) ,ETFbitcoin (1)
But I guess depending on how it's implemented, every new UTXO after the upgrade could be private by default, without an option to disable that.
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Zcash currently allows all 4 directions between transparent t addresses and shielded z addresses: t2t, t2z, z2t, and z2z. I'm not sure how these qualifiers work if you have different types of inputs, or different types of outputs in one tx.
A first step to phasing out transparent addresses is to disable z2t, so once shielded you stay shielded. A 2nd step is to disable t2t, so you cannot create new transparent outputs.

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Are there existing concepts / ideas about the very question how to best 'add' privacy to an existing coin (in terms of what to do with pre-upgrade UTXOs and whether privacy can or should be optional afterwards)?

IMO a coin that values full auditability should keep private amounts optional, although one could argue that with ElGamal commitments, at least unconditional soundness is preserved.