Human Readable Bitcoin Payment Instructions

Human Readable Bitcoin Payment Instructions

Posted on: February 22, 2024 09:48 UTC

The discussion revolves around the optimal method for handling testnet and signet annotations, specifically regarding the use of subdomains and records for Bitcoin transactions.

The suggestion to avoid including the word "bitcoin" directly in both the subdomain and the record aims to add a layer of obfuscation, making it slightly more challenging to filter or map domains related to Bitcoin transactions. This approach is considered to increase privacy and security by requiring additional effort to identify and aggregate such domains.

There's an exploration of using BIP21-style URIs within text records and the reasoning behind opting for a single large record to encompass all payment types. The conventional method involves specifying the payment address directly in the DNS TXT record, which could potentially make it easier to discern what the payer is attempting to achieve. However, this practice raises questions about its efficacy in hiding transaction details since querying multiple records is a feasible strategy.

An alternative proposition includes structuring the DNS TXT records to separate each payment address type into its own record. This method not only circumvents the 255 character limitation inherent to TXT records but also may enhance privacy by dispersing the information across multiple entries, making it less straightforward to gather comprehensive transaction data through a single query. The dialogue underscores the trade-offs between ease of implementation and the degree of privacy or obscurity achieved through the chosen method of structuring DNS records for Bitcoin payments.