With the advent of software development kits like BDK and LDK, building a bitcoin wallet has never been easier. However, as much as easier development
With the advent of software development kits like BDK and LDK, building a bitcoin wallet has never been easier. However, as much as easier development is necessary, it’s important to build in a way that protects user security and privacy by default. For example, how a light wallet connects to a third-party server to receive and send transaction data is an important issue to address.
I believe that bitcoin wallets need block filters to respect a user’s privacy. Why? It’s the only way to keep data from leaking to the server, which would allow it to link a user’s transaction data beyond what is publicly available.
In this article, we will explore why bitcoin wallets need block filters by first looking at how many bitcoin users run full nodes, how API wallets offer good user experience but ultimately lead to all your transactions being linked together, how bloom filters have failed to protect privacy, how block filters are the only lightweight wallet network privacy solution, and finally how this can all be implemented using Tor-only communication to also protect a user’s IP address.
ONLY A FEW USERS RUN FULL NODES
Running and using a Bitcoin node is the best thing you can do because you’re part of the network and you don’t need any intermediaries to receive and broadcast transaction data. However, It’s obvious that running a full node is not for everyone; the existence and need for light clients.
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