Bitcoin Privacy refers to the degree of anonymity associated with Bitcoin transactions. While Bitcoin’s ledger is public, true sender and receiver identities are pseudonymous, linked only to alphanumeric addresses. Enhancing this privacy involves techniques such as CoinJoin, address reuse avoidance, and transaction mixing. These methods aim to obscure transaction flows and break deterministic links between wallet addresses.
Context
Bitcoin privacy remains a subject of ongoing development and regulatory scrutiny. Debates focus on the balance between user anonymity and compliance requirements for anti-money laundering. Future advancements include further adoption of privacy-centric protocols like Taproot and Schnorr signatures, alongside increasing use of layer-2 solutions that offer enhanced transaction obfuscation.
This research introduces protocols enabling zero-knowledge proofs on Bitcoin for privacy-preserving applications, leveraging zk-STARKs and BitVM to overcome Bitcoin's inherent programmability limitations.
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