ernaK on Nostr: Guide on How to Use PayJoin (BIP78) PayJoin (P2EP) is a privacy-enhancing Bitcoin ...
Guide on How to Use PayJoin (BIP78)
PayJoin (P2EP) is a privacy-enhancing Bitcoin transaction protocol. It helps obscure the transaction trail by having both the sender and receiver contribute inputs to the transaction. Here’s a step-by-step guide:
Step 1: Understand the Basics
• What is PayJoin?
A protocol allowing sender and receiver to combine inputs, improving privacy by making the transaction indistinguishable from regular ones.
• Why Use It?
• Enhances privacy for both sender and receiver.
• Breaks common transaction tracking heuristics.
Step 2: Check Prerequisites
• Wallet Support
Ensure both sender and receiver use wallets that support PayJoin (e.g., Wasabi, Samourai, BTCPay Server, BlueWallet).
• Merchant Support
If sending to a merchant, confirm they accept PayJoin.
Step 3: Sender’s Setup
1. Choose a Wallet
Use a PayJoin-compatible wallet.
2. Prepare Inputs
Ensure sufficient Bitcoin balance in your wallet.
3. Initiate Payment
When scanning or entering the merchant’s invoice, ensure the wallet recognizes it as PayJoin-enabled.
Step 4: Receiver’s Setup (Merchant/Individual)
1. Install PayJoin-Compatible Server
• Use tools like BTCPay Server or a compatible wallet with PayJoin integration.
• Configure your payment system to enable PayJoin.
2. Generate Invoice
Create a standard invoice as usual. PayJoin functionality is embedded seamlessly.
Step 5: Execute the PayJoin Transaction
1. Sender Sends Transaction Proposal
The sender’s wallet proposes a transaction and sends it to the receiver’s PayJoin endpoint.
2. Receiver Adds Inputs
The receiver’s wallet or server adds its inputs to the transaction, creating a PayJoin transaction.
3. Transaction Broadcast
The updated transaction is signed and broadcast to the Bitcoin network.
Step 6: Verify Transaction
• Confirm the transaction is successful on the Bitcoin blockchain.
• Both sender and receiver should verify the amount and confirm privacy enhancements.
Step 7: Best Practices for Enhanced Privacy
• Avoid reusing Bitcoin addresses.
• Use CoinJoin or other mixing services for additional privacy if needed.
• Regularly update wallet software for the latest PayJoin support.
By following these steps, you can seamlessly use PayJoin for more private Bitcoin transactions.
#payjoin #bitcoin #bip78 #nostr #wallet
PayJoin (P2EP) is a privacy-enhancing Bitcoin transaction protocol. It helps obscure the transaction trail by having both the sender and receiver contribute inputs to the transaction. Here’s a step-by-step guide:
Step 1: Understand the Basics
• What is PayJoin?
A protocol allowing sender and receiver to combine inputs, improving privacy by making the transaction indistinguishable from regular ones.
• Why Use It?
• Enhances privacy for both sender and receiver.
• Breaks common transaction tracking heuristics.
Step 2: Check Prerequisites
• Wallet Support
Ensure both sender and receiver use wallets that support PayJoin (e.g., Wasabi, Samourai, BTCPay Server, BlueWallet).
• Merchant Support
If sending to a merchant, confirm they accept PayJoin.
Step 3: Sender’s Setup
1. Choose a Wallet
Use a PayJoin-compatible wallet.
2. Prepare Inputs
Ensure sufficient Bitcoin balance in your wallet.
3. Initiate Payment
When scanning or entering the merchant’s invoice, ensure the wallet recognizes it as PayJoin-enabled.
Step 4: Receiver’s Setup (Merchant/Individual)
1. Install PayJoin-Compatible Server
• Use tools like BTCPay Server or a compatible wallet with PayJoin integration.
• Configure your payment system to enable PayJoin.
2. Generate Invoice
Create a standard invoice as usual. PayJoin functionality is embedded seamlessly.
Step 5: Execute the PayJoin Transaction
1. Sender Sends Transaction Proposal
The sender’s wallet proposes a transaction and sends it to the receiver’s PayJoin endpoint.
2. Receiver Adds Inputs
The receiver’s wallet or server adds its inputs to the transaction, creating a PayJoin transaction.
3. Transaction Broadcast
The updated transaction is signed and broadcast to the Bitcoin network.
Step 6: Verify Transaction
• Confirm the transaction is successful on the Bitcoin blockchain.
• Both sender and receiver should verify the amount and confirm privacy enhancements.
Step 7: Best Practices for Enhanced Privacy
• Avoid reusing Bitcoin addresses.
• Use CoinJoin or other mixing services for additional privacy if needed.
• Regularly update wallet software for the latest PayJoin support.
By following these steps, you can seamlessly use PayJoin for more private Bitcoin transactions.
#payjoin #bitcoin #bip78 #nostr #wallet