delvingbitcoin

Silent Payments: Light Client Protocol

Silent Payments: Light Client Protocol

Original Postby setavenger

Posted on: June 8, 2024 19:50 UTC

The concern raised about the potential for servers to unmask users during the transaction data fetching process highlights a critical privacy issue within client-server interactions.

The vulnerability stems from clients only performing certain actions in response to untrusted data, specifically during steps involving tweaks and public keys. This scenario outlines a risk where servers, especially if colluding, could exploit this process to compromise user anonymity.

A proposed solution mirrors the approach taken by Wasabi Wallet with its implementation of BIP158, suggesting an operational model where clients initially download untrusted tweaks and a filter from the server, using secure and ephemeral connections like Tor. This step is crucial for maintaining anonymity up to a point. On identifying a match, the next recommendation is for the client to then download the full block from a random full node. This step should ideally occur over a different network identity to further obfuscate the client's activities, thus enhancing privacy. Such measures are designed to minimize the risk of tracking or unmasking by malicious entities.

However, concerns were expressed regarding the practicality of downloading tweak data via Tor, especially for users on mobile platforms or those operating under constraints that might not support constant, high-bandwidth connections. The discussion acknowledges the trade-off between optimizing for bandwidth and ensuring privacy protection. It is suggested that while minor optimizations in bandwidth usage might be beneficial for light client payment activities, the overall priority should lean towards using full blocks for the sake of robustness and security.

The conversation also opens up considerations for conducting benchmarks to understand the real-world implications of these choices on bandwidth consumption. Particularly for use cases like donation wallets, which may experience frequent transactions, the actual benefits of bandwidth savings versus privacy risks need careful evaluation. Concluding that if the bandwidth savings are minimal, adopting the full block download approach would be preferable to ensure user privacy and security.