bitcoin-dev

Combined summary - BIP proposal - Dandelion: Privacy Preserving Transaction Propagation

Combined summary - BIP proposal - Dandelion: Privacy Preserving Transaction Propagation

The Dandelion project is a privacy-enhancing solution for Bitcoin users that aims to provide formal anonymity guarantees.

It prevents deanonymization of the network by routing transactions over a randomly selected path before diffusion. The team has completed additional theoretical analysis and simulations, built a working prototype, and written detailed documentation for the new implementation.They recommend 'per-inbound-edge' routing during the stem phase to block fingerprint attacks. The team also addresses concerns about periodic route shuffling interval, black-hole attacks, and the probabilistic nature of their guarantees.A discussion on the deployment of Dandelion relays suggests choosing relays regardless of whether they support Dandelion or not. Wallets may have a configuration option for stem forwarding, which will initially be hidden and set to off. The team believes this approach is sufficient to select Dandelion-capable out-peers without harm. They plan to prioritize writing a clearer specification for node behavior in the BIP.Pieter Wuille and Bradley Denby discuss Dandelion node behavior and raise concerns about malicious nodes exploiting routing decisions based on self-reported features. They recommend not allowing fee filters from peers to influence route choice and suggest automatically fluffing or applying fee filters in the stempool. Stem orphans can be resolved by re-broadcasting previous unfluffed transactions or waiting for the fluff phase. They also caution against making routing decisions based on claims made by peer nodes.The Dandelion team receives feedback from Pieter Wuille and plans to prioritize writing a clearer specification for node behavior in the BIP. They recommend not allowing fee filters from peers to influence route choice and suggest automatically fluffing or applying fee filters in the stempool. They address stem orphans and advise against biasing the peer selection code. On the implementation side, they apply the same logic to the stempool as the mempool.Bradley Denby proposes the Dandelion protocol as a privacy-enhancing modification to Bitcoin's transaction propagation mechanism. The team has developed a working prototype and written detailed documentation for the implementation. Pieter Wuille raises concerns about the need for clearer node behavior descriptions and the protocol's interaction with other elements of the Bitcoin ecosystem.The Dandelion project aims to provide greater anonymity for Bitcoin users by routing transactions through multiple nodes. The team has built a working prototype, conducted theoretical analysis and simulations, and written detailed documentation. They recommend using Tor for targeted deanonymization concerns but see Dandelion as a "public health" fix. The team plans to prioritize writing a clearer specification for node behavior in the BIP.Researchers have developed the Dandelion protocol to enhance privacy for Bitcoin users. Transactions are routed over a randomly selected path before diffusion to prevent deanonymization attacks. The team has completed additional analysis, simulations, and documentation. They address routing during the stem phase, deployment of Dandelion relays, and the influence of fee filters on route choice. The team also discusses stem orphans and the importance of clear node behavior descriptions.The Dandelion project proposes a modification to Bitcoin's transaction propagation mechanism to enhance privacy. They have developed a new variant called Per-Incoming-Edge routing and addressed intersection attacks. Concerns are raised about the Mempool Embargo approach and an alternative construction is proposed. An experiment comparing learning rates under diffusion and Dandelion is included.A preliminary implementation and BIP for Dandelion have been developed. The proposal aims to obscure the original source IP of each transaction and defend against attackers trying to learn nodes involved in the stem phase. Concerns about information leaks and handling chains of unconfirmed stem transactions are raised. The transition from stem to fluff phase is under-specified. An alternative construction is suggested to improve anonymity set during the transition phase.A group of developers has introduced a preliminary implementation and Bitcoin Improvement Proposal (BIP) for Dandelion, a privacy-enhancing modification to Bitcoin's transaction propagation mechanism. The aim is to increase the anonymity set by obscuring the original source IP of each transaction. The proposed two-phase approach involves the "stem" phase and the "fluff" phase.During the stem phase, transactions are relayed to a single peer by each node. This process improves the anonymity set as capable nodes take on the role of the last stem hop. After a random number of hops along the stem, the transaction enters the fluff phase, which behaves similarly to ordinary transaction flooding or diffusion.The developers have included several new design ideas in their proposal. They have introduced a stronger attacker model to defend against an attacker actively trying to learn which nodes were involved in the stem phase. This approach, called "Mempool Embargo," ensures that a node receiving a stem phase transaction behaves as if it never heard of it until it receives it from someone else or a random timer elapses.The team is also working on ensuring robustness, as they believe the privacy benefit should not come at the expense of propagation quality

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Andrew MillerOriginal Post
June 12, 2017 14:46 UTC
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