privateness – The right way to settle for donation accurately?


Think about an online web page that desires to just accept Bitcoin donations. A naive strategy is to supply a single handle on the web page and that is it. The issue right here is that the handle is understood to everybody and if the cash ever strikes, the handle is being reused for brand spanking new donations after the primary spend.

OK, so how can we do higher? We are able to have xpub and generate a brand new handle each time … each time what? The primary primary technique can be to generate a brand new handle as quickly as somebody sends a donation to the beforehand generated one. The issue right here is that an lively monitoring of the net web page by a robotic merely reveals all of the addresses once more.

Can we do higher? We are able to, for instance, generate a brand new handle per IP handle. Doing this, the robotic would at all times see one handle that’s devoted to its IP handle and until somebody from the robotic’s community beneath the identical IP handle donated, the robotic couldn’t reveal something helpful. The issue right here is that if we assume not very excessive conversion charge, we generate quite a lot of addresses and most of them by no means obtain any donation. This causes an issue with seed restoration, the place there normally is a niche restrict outlined for the utmost variety of empty addresses which might be scanned earlier than the scan is terminated. I assume that is fairly pockets particular rule, however I assume normally, the issue exists right here (does it actually?).

So how can we do higher? Say we need to use a chilly storage utilizing a 24 phrase seed + passphrase and we’re joyful to run Bitcoin Core along with the net web page. How can we resolve donation in a means that’s manageable, could be recovered from seed, and on the similar time optimizes for privateness? Does an answer already exists someplace (for instance BTCPayServer)? In that case, how does it work and what are the privateness properties of such an answer?

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