How PayNym (BIP47) changes the game for miners
How #PayNym changes the game for miners
We have bad news for you. In the decentralized world, you are under radar unless you do something about it. As a Bitcoin miner you disclose a lot of unwanted information just by receiving your daily pool payouts. This includes your revenue, performance and trends. In this issue of Privacy Mondays, we will cover the three approaches in payout management and privacy aspects of each of those.
There are three parties and three strategies involved in this topic. The parties are:
2. The Mining Pool
3.The unwanted third-party aka The Spy
And the strategies are:
1. Static address
1. Static Address:
This is the most insecure method that breaches your privacy. The Spy, by monitoring that address, will know exactly how your performance have been and how much money you have made.
By providing your Xpub to a pool they will be able to generate a new address of your wallet every time they send you a payout. This comes at a cost; they will be able to track all your activities across any network (coin) in the past and in the future. Although it blocks the spy from tracking you, it gives away unnecessary information to your business partner (the pool).
3.PayNym or BIP47
First introduced in 2015, this method is known to fulfill privacy between two parties without giving access to an external party to track them. In this method you provide the pool with a payment code which will be used to generate a new address every time they send you a payout. The pool won’t be able to track any other transactions/addresses outside the scope of your relationship and that is why it is considered the best practice.
Lincoin as the leading Bitcoin mining pool in transparency, profitability and monitoring tools, is the first mining pool ever to implement this solution. Simply register your PayNym with us and maintain your privacy on auto-pilot.
Our next issue will be on hashrate hijacking. Follow us for more.