Bitcoin Optech Newsletter #8: Key Updates on Responsible Disclosure, Privacy Enhancements, and Protocol Improvements

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Action Items

Dashboard Highlights


News

1. Supporting Security Researchers

Cory Fields (Bitcoin Core/DCI) revealed his anonymous disclosure of a critical Bitcoin Cash consensus bug. Projects are urged to streamline secure, anonymous reporting. DCI’s Neha Narula offers guidelines for maintainers and users.

👉 Test your process: Simulate an anonymous report via Tor/PGP to evaluate accessibility.

2. Pay-to-End-Point (P2EP) Privacy Proposal

Adam Ficsor (zkSNACKs) and Matthew Haywood (Blockstream) proposed P2EP, a CoinJoin-like method enhancing privacy without consensus changes. Wallets like BTCPay Server may adopt it for obfuscating blockchain analysis.

3. Bitcoin Core Adopts Low-R Signatures

PR #13666 ensures signatures omit an extra byte by generating low-R values, saving ~1 byte per two signatures. Benefits include:

4. Lowering Minimum Relay Fees

Bitcoin Core plans a two-phase reduction:

  1. Lower defaults for nodes/miners.
  2. Adjust wallet minimums later.

👉 Engage with updates on adopting reduced fees.

5. P2P Protocol Restricts Locators

PR #13907 limits getblocks/getheaders messages to 101 hashes, preventing excessive I/O. Feedback welcomed via bitcoin-dev mailing lists.

6. Schnorr BIP Finalized

Mail-list discussions confirmed the proposed Schnorr signature parameters, reinforcing confidence in the BIP’s design.


Notable Code Updates

Bitcoin Core

LND

C-Lightning


FAQ

Q: How does P2EP improve privacy?
A: It masks transaction links by merging payer/receiver inputs via CoinJoin-style techniques, confusing blockchain analysis.

Q: Will low-R signatures affect wallet compatibility?
A: No—it’s a wallet-level optimization, not a protocol change.

Q: What’s the impact of lower relay fees?
A: Reduces costs for users and miners, but adoption must align across ecosystem actors.

👉 Explore more Bitcoin innovations.