The future of privacy on Bitcoin

Quick Take

  • Privacy on Bitcoin is improving.
  • Base-layer upgrades like Dandelion, Schnorr, and Taproot have been suggested as a way to improve the network’s privacy.
  • Sidechains offer a way to test privacy upgrades like confidential transactions inside a walled garden.
  • The Lightning Network has major privacy benefits, and layer-two privacy is improving through protocols like ant routing, atomic multipath payments, and zkChannels.
This research piece examines base-layer and above-network approaches to improve Bitcoin's privacy capabilities.

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