August 11 Have the samurai found the key to privacy and financial freedom?
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Samourai sent shockwaves through the Bitcoin community by unveiling a new feature for atomic swaps from BTC to XMR that solves the “traditional” change. Doxxic Change refers to the unspent tainted transaction outputs (UTXOs) remaining from Whirlpool CoinJoins. This could be a quantum leap forward in terms of on-chain privacy in Bitcoin.
Is the Cypherpunk element in Bitcoin alive and well?
The Bitcoin privacy community has been in a state of excitement over the past few days with recent days advertisement From the Samourai Wallet team and Mysu Wallet developer, BoxThey announced their joint work on BTC to XMR Atomic Swaps which will soon be added to the Samourai Wallet. By allowing atomic swaps from Bitcoin to Monero and leveraging the “virtual privacy” blockchain, Samourai users will soon be able to securely transact the change generated by participating in Whirlpool CoinJoins. Whirlpool is a Samourai implementation of the Zerolink CoinJoin protocol, which mixes a user's UTXOs with others, obfuscating the sources.
Atomic swaps refer to a technology that allows one cryptocurrency to be exchanged for another without the need for a central intermediary, such as an exchange. The term “atomic” here means that the exchange process is indivisible; It either happens in its entirety or it doesn't happen at all. This ensures that one party cannot cheat the other party by receiving funds without sending their own money in return. Atomic swaps provide a way to ensure that belief change is not mismanaged in a way that could jeopardize personal or financial privacy.
Why is atomic swap important? Atomic swaps allow users to exchange cryptocurrencies peer-to-peer (P2P) without relying on trusted third parties. Since there is no middleman, users can save on fees associated with traditional trading. Since there is no middleman, users also do not have to entrust their funds to a third party, reducing the risk of hacking, fraud, theft or irregularities. Atomic swaps facilitate unauthorized and trustless trading via P2P technology, directly between token holders themselves.
If atomic swaps weren't epic enough, Samourai recently added a JoinBot feature that allows users to submit a STONEWALLx2 transaction using an always online bot to help originate the transaction. STONEWALLx2 allows users to collaborate in collaborative transactions to create deceptive deliverables. This makes it difficult for observers to provide accurate interpretations of the transaction graph.
Samourai has also added the ability to withdraw funds from JoinMarket Timelocked Fidelity Bonds. If a user has Bitcoin in the address of a timed fidelity bond in JoinMarket, they can now erase the private key in their Samourai wallet after the bond expires.
The pace at which the Samourai team is releasing new privacy tools for cypherpunks is actually quite impressive and praiseworthy. By thinking outside the box and using the best tools available for specific privacy use cases, they delivered exactly what privacy advocates were looking for. The cypherpunk element of Bitcoin appears to be alive and well, although some… The naysayers It still needs to be heard.
Has the Doxxic change issue been resolved?
Anyone serious about Bitcoin privacy has eventually stumbled upon the term “CoinJoin” as a method of hiding the ownership history of UTXOs.
When a user participates in CoinJoin, they combine their inputs with other participants to create a transaction where all outputs are of equal value, making it difficult to determine which output corresponds to which input. However, if the input is not an exact multiple of the required mixed output quantity, the change output will be returned to the user. These change outputs do not have the same value as the mixed output and can be mapped back to the original input.
CoinJoin is the virtual equivalent of everyone throwing the same amount of billed money into a hat, shaking it all out, and then everyone withdraws the amount they threw. The invoices received will be of the same value but will most likely be invoices submitted by another participant, and not the same invoices originally submitted. With Bitcoin's transparent and immutable ledger, this technology is good enough to provide a decent level of privacy on UTXOs, the only problem being the resulting traditional change.
The term “doxxic change” or “doxxed change” in the context of CoinJoin and Bitcoin privacy refers to the unmixed change output that results from a CoinJoin transaction. These change outputs could be a privacy concern because they are potentially linkable to the original inputs of CoinJoin.
Doxxic change can be an issue for personal and financial privacy when using Bitcoin because improper UTXO management may lead to:
Loss of privacy: The primary goal of CoinJoin is to increase privacy by breaking the deterministic links between inputs and outputs. If you later spend your cash change with your mixed currencies, you risk pegging those mixed currencies to their original input.
Contamination of mixed currencies: If change is spent in such a way that it can be linked back to its owner or original input, this can distort other outputs and reduce the privacy gained from CoinJoin.
Blockchain analysis: Companies and entities conducting blockchain analysis can mark or flag traditional change outputs, facilitating the construction of transaction graphs and reducing user privacy.
It is important for users of CoinJoin and other mixing services to be aware of the potential risks associated with belief change and to use strategies to mitigate these risks. Samourai's announcement of a BTC to XMR atomic swap as a way to handle belief change could be a game-changer for Bitcoin privacy. Atomic swapping can be the optimal strategy for mitigating the risks associated with belief change.
Although the feature is not yet implemented, it is being finalized and will be available to users soon. Atomic swaps can be one of the best ways to deal with the traditional swap problem, which is a major stumbling block to user privacy, safety, and security. Without proper currency control and UTXO management, privacy and security can be compromised.
What is a samurai wallet? Bitcoin wallet for the streets
In the ever-evolving landscape of Bitcoin wallets, there is a clear divide between those that prioritize ease of use and convenience and those that prioritize privacy. Samourai Wallet stands firmly in the latter camp, catering to users who value privacy above all else.
Samourai Wallet is a mobile Bitcoin wallet available for Android devices, known for its commitment to user privacy and an impressive set of advanced features. Samourai originated out of dissatisfaction with the privacy shortcomings of traditional Bitcoin wallets, and was designed to keep transactions private.
Samurai markets itself as “Bitcoin wallet for the streets.” While many wallets claim privacy, Samourai Wallet proves its commitment with these advanced privacy features:
Stone wall: This feature increases the ambiguity of transactions by creating deceptive inputs and outputs, making it very difficult for observers to provide accurate interpretations of the transaction graph.
bouncing back: To ward off blockchain spies and transaction blacklisting, Ricochet adds extra “hops” to your transaction. This means that when bitcoins are sent, they are routed through additional addresses before reaching the final destination.
PayNyms: Unlike traditional address formats that can be tied to a specific wallet, PayNyms offers a reusable BIP47 payment token that is private between sender and recipient.
whirlpool: This is Samourai's implementation of the Zerolink CoinJoin protocol, which mixes the user's UTXOs with others, obfuscating the sources.
Dojo: For users who are serious about self-sovereignty, Dojo is a personal Bitcoin full node, helping users validate their own transactions and increase their privacy.
Relentless focus on privacy: While many wallets offer privacy as a side benefit, Samourai was designed from the ground up with privacy in mind. Every function and design decision revolves around ensuring user privacy.
Privacy and financial freedom
While Bitcoin is, at its core, a transparent ledger, the importance of transaction privacy is also high on the agenda of many users. As blockchain analysis tools become increasingly available, tools like Samourai Wallet are not just conveniences but essentials.
Privacy is an essential component of financial freedom and privacy. Although often underappreciated in societies with stable financial and political systems, the importance of financial privacy becomes starkly apparent in situations where it is violated or nonexistent.
Without financial privacy, individuals (especially Bitcoin users, as we have seen on multiple occasions) can become targets of crimes such as theft, extortion, or fraud. If everyone can see how much money you have or what you spend it on, this exposes you to potential threats.
In repressive regimes, governments can use financial transactions to track, punish, or marginalize political opponents. If an authoritarian government knew who was funding opposition groups, for example, it could take action against those groups or their supporters.
Financial transactions can be a form of expression. Donating to a certain cause, subscribing to certain media, or purchasing certain books can be an expression of personal beliefs. Financial privacy ensures that individuals can make these expressions privately.
Financial privacy allows individuals to participate in the economy without interference. This includes the ability to save, invest, and transact without being subject to undue scrutiny, which may be essential for personal growth and prosperity.
As commerce continues to move online, trust in digital transactions is more important than ever. Trusted financial privacy guarantees, ensuring that individuals feel secure when participating in the global Bitcoin-based digital economy.
At its core, privacy is a protector of freedom. Without financial privacy, individuals' independence and safety are at risk, hindering true financial freedom.
