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Topic: [Discussion] Dandelion - A protocol to hide transaction origin - page 3. (Read 954 times)

legendary
Activity: 2898
Merit: 1823
OP, can you post more information and what your opinion is on the proposal? That would help start the discussion.

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1. Would this affect physical merchants who accept 0-confirmation, since transaction propagation will be longer and merchant/user might have wait a bit longer while there's queue?

Of course. It will affect the user too. I will not let the payer leave until I see one confirmation if I was the merchant. Hahaha.

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2. Would this affect block size/weight limit size increase in future?

I believe yes, the same as ring signatures? Maybe DooMad can confirm.

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3. Is using Tor/I2P/Kovri better/simpler solution?

Or take features that help in anonymous transactions in an off-chain solution that Bitcoin already has?
legendary
Activity: 2870
Merit: 7490
Crypto Swap Exchange
Recently i read some Bitcoin improvement idea, but i'm really surprised there are barely any information on news media, medium and this forum. So, i decided to make this thread.

What is Dandelion?
Dandelion is a protocol to prevent IP tracking/nodes which firstly broadcast transaction. Bitcoin protocol don't need to be changed since it's implemented on Bitcoin client, which means no soft/hard-fork required.

Why it's necessary?
Every time a node broadcast a transaction, obviously you sent the transaction to other nodes. That means other nodes know who broadcast the transaction to them.
If there's group/state who wish to track transaction origin, they could run many nodes and connect to as many nodes as they can so they can get the node which broadcast the transaction first.

How it works (simplified) ?


1. Make a privacy graph (few people refers it to hamiltonian circuit or "anonymity set") which contain random peer.
2. A node broadcast a transaction to another peer on circuit
3. The next peer randomly decide to :
    A. broadcast the transaction to Bitcoin network (10% chance by default)
    B. Only broadcast to next peer on circuit (back to step 3)

Potential problems
1. Not enough peers to participate, which reduce Dandelion's advantage.
2. While Dandelion bring good privacy improvement, IMO state/group could track to the "anonymity set".

My opinion
Dandelion bring lots of advantage which require no protocol change and user barely feel the disadvantage (such as slightly longer transaction propagation). Bitcoin Core or any clients should implement Dandelion.

Estimated release date
It was planned along with Bitcoin Core 0.17.0 releases, but currently planned released along with 0.18.0.

p.s. this thread might be changed if i realized there's wrong information, find simpler/more accurate explanation or found reliable information source.

Some informations:
1. https://arxiv.org/pdf/1701.04439.pdf
2. https://github.com/dandelion-org/bips/blob/master/bip-dandelion.mediawiki
3. https://t4ch.top/dandelion-a-bitcoin-protocol-to-hide-a-transactions-origin/
4. https://medium.com/@thecryptoconomy/dandelions-and-a-bright-future-for-bitcoin-privacy-712dbc4b1ec5
5. https://bitcoinmagazine.com/articles/anatomy-anonymity-how-dandelion-could-make-bitcoin-more-private/
6. https://github.com/bitcoin/bips/blob/master/bip-0156.mediawiki
7. https://hackernoon.com/bitcoin-upgrades-with-dandelion-the-transaction-privacy-protocol-ae9647bfbcb2

This thread is archived at https://archive.fo/mg8oZ
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