State of the transaction privacy work in Bitcoin

[craigraw]

With the exception of donations, you already have to be in contact with the counterparty to negotiate the terms of the transaction.

Many (most?) transactions involve repeat payments where the amount is already determined. This is one of the reasons address reuse is so high - negotiating a new onchain address for each repeat payment is simply too inconvenient.

This functionality is already possible by just sharing a new xpub with each sender, it doesn’t have to be a new SP address.

Sharing an SP address per persona is much better than sharing an xpub per sender, both in terms of privacy and convenience.

@Kruw

Psychologically, I would hesitate more to send a donation to a SP address compared to a BTCPay generated address because I don’t know if the recipient still has the keys for the SP address… Even still, the marginal benefit is still risky compared to generating a new address for each payment

These arguments remind me of the objections to HD wallets back in the day (xpub-as-total-exposure privacy problem, single-point-of-failure critique of the seed etc) and miss the fact that benefits vastly exceed the possible pitfalls. This is a privacy thread, and if you fail to acknowledge that the current approach is leading to high address reuse then you fail to acknowledge reality.