BIP proposal, Pay to Contract BIP43 Application

A developer named Omar Shibli has proposed a new method for conducting transactions using the Homomorphic Payment Addresses and Pay-to-Contract Protocol, which uses the homomorphic property of elliptic curve encryption to achieve payment. The proposal defines levels in BIP32 path and contract commitment address that is computed by hashing a document with a cryptographic hash function, partitioning the array into parts, converting each part to an integer in decimal format, and joining all strings with a slash. The proposal does not address security concerns around payment to contracts or durability issues when losing funds if the exact contract is lost. There is no standard specification on how to conduct such transactions in cyberspace, but developers hope this proposal will result in a standard for the benefit of the community. The full BIP draft can be found at the provided link.