aljaz/bitcoin-tutorials
1
1
Fork 0
mirror of https://github.com/openoms/bitcoin-tutorials.git synced 2025-12-19 12:54:19 +01:00
Code Issues Packages Projects Releases Wiki Activity

add to the introduction and more about the Tumbler

Browse Source
This commit is contained in:
openoms
2022-03-12 10:15:29 +00:00
parent 59c384d4ca
commit 0fdc841dda
1 changed files with 64 additions and 44 deletions
Download Patch File Download Diff File Expand all files Collapse all files

104
joinmarket/joinmarket_private_flow.md
View File

@@ -1,17 +1,18 @@
# A private flow through JoinMarket # A private flow through JoinMarket
Guidance to get started with sending bitcoin through the JoinMarket wallet following basic good practices. Bitcoin privacy starts on the base layer where cooperative transactions with equal amount outputs - known as coinjoins - are used.
This document aims to provide an introduction to using JoinMarket, a decentralized, liquidity market based coinjoin implementation following basic good practices.
## Common definitions ## Common definitions
### Mixdepth ### Mixdepth
* one of the accounts in the joinmarket wallet * One of the accounts in the JoinMarket wallet.
* abbreviated to m0 / m1 / m2 / m3 / m4 * Abbreviated to m0 / m1 / m2 / m3 / m4
* all are derived from the same BIP32 compatible HD seed * All are derived from the same BIP32 and BIP39 compatible HD seed.
### Sweep ### Sweep
* it means sending one or multiple utxos without creating change * It means sending one or multiple utxos without creating change.
* it is achieved by sending all utxos (except the ones frozen) from an account * It is achieved by sending all utxos (except the ones frozen) from an account.
* the amount is not fixed and fees come off the sum of the inputs * The amount is not fixed and fees come off the sum of the inputs.
### Status labels ### Status labels
* applied automatically by JoinMarket via a simple transaction analyses * applied automatically by JoinMarket via a simple transaction analyses
@@ -23,18 +24,20 @@ Guidance to get started with sending bitcoin through the JoinMarket wallet follo
#### `reused`: a utxo on an address which has been used previously #### `reused`: a utxo on an address which has been used previously
### Orderbook ### Orderbook
* Any platform collecting the public orders of the peers * Any platform collecting the public orders of the peers.
* General docs on the order book (including how to run without Bitcoin Core): https://github.com/JoinMarket-Org/joinmarket-clientserver/blob/master/docs/orderbook.md * General docs on the order book (including how to run without Bitcoin Core): https://github.com/JoinMarket-Org/joinmarket-clientserver/blob/master/docs/orderbook.md
* a public example: <https://nixbitcoin.org/orderbook> * A public example: <https://nixbitcoin.org/orderbook>
### Minimum size to coinjoin ### Minimum size to coinjoin
* the default is 100k sats (+/-10%) so that is a safe choice. * The default is 100k sats (+/-10%) so that is a safe choice.
* on the example below offers start at 6 peers offering min 27300 sats. * On the example below offers start at 6 peers offering min 27300 sats.
* Running the Tumbler would require to start with a higher amount as the fees can take up a significant portion.
### Maximum size to coinjoin ### Maximum size to coinjoin
* the max amount offered is limited by the wallet of each Maker * The max amount offered is limited by the wallet of each Maker.
* it is the highest amount in one single mixdepth (-0-10%) * It is the highest amount in one single mixdepth (-0-10%).
* multiple bitcoin amounts are offered by several (10+) peers * Multiple bitcoin amounts are offered by several (10+) peers.
* on the example below 21 peers offer 19+ BTC * On the example below 21 peers offer 19+ BTC
### Screenshots taken from <https://nixbitcoin.org/orderbook> in March 2022. ### Screenshots taken from <https://nixbitcoin.org/orderbook> in March 2022.
* Click the top of the line to order by it's attribute * Click the top of the line to order by it's attribute
<p align="left"> <p align="left">
@@ -45,16 +48,29 @@ Guidance to get started with sending bitcoin through the JoinMarket wallet follo
## The flow of funds ## The flow of funds
Guidance is provided in the behaviour of the Tumbler script which could be used for the quickest result. * First need to state that [one single coinjoin doesn't improve privacy much](https://github.com/JoinMarket-Org/joinmarket-clientserver/issues/1047#issuecomment-944995635).
Discussed in: * Participating in more coinjoins is essential. Find below the two main ways to achieve this.
* https://gist.github.com/chris-belcher/7e92810f07328fdfdef2ce444aad0968
## Running the Tumbler
* Using the Tumbler is a higher time preference option and usually is the best tool to use if the funds are needed in the near future - it can take multiple hours, up to days.
* Multiple coinjoins are sent through the accounts including sweeping transactions at the start and at the end.
* Breaks up the deposited amounts and sends to at least 3 final addresses without leaving change behind.
* For the best outcome avoid merging between the final addresses.
* The initiator acts repeatedly as a Taker and [pays all the miner and coinjoin fees](https://github.com/JoinMarket-Org/joinmarket-clientserver/blob/master/docs/tumblerguide.md#a-note-on-fees);
* It is implemented in the JoinMarket-QT GUI and in the command line as the `tumbler.py`.
* For a detailed usage guide see:
* https://github.com/JoinMarket-Org/joinmarket-clientserver/blob/master/docs/tumblerguide.md * https://github.com/JoinMarket-Org/joinmarket-clientserver/blob/master/docs/tumblerguide.md
* Video demonstration of the Tumbler function in QT GUI:
* https://www.youtube.com/watch?v=hwmvZVQ4C4M&t=827s
* Discussed further in:
* https://gist.github.com/chris-belcher/7e92810f07328fdfdef2ce444aad0968
* https://joinmarket.me/blog/blog/the-445-btc-gridchain-case/ * https://joinmarket.me/blog/blog/the-445-btc-gridchain-case/
## Sending transactions manually and running the Yield Generator
### Deposit ### Deposit
* send to m0 - could be any of the accounts, but selected the first for simplicity * Send to a new address in m0 - could be any of the accounts, but suggesting using the first one for simplicity.
* deposit a single or multiple coins from a single funding source at a time * Deposit a single or multiple coins from a single funding source at a time.
* select the newly deposited coin(s) with freeze/unfreeze if there are others in the account * Select the newly deposited coin(s) with freeze/unfreeze if there are others in the account.
### Sweep ### Sweep
* start with detaching the deposited coins from their history * start with detaching the deposited coins from their history
@@ -62,43 +78,47 @@ Discussed in:
* there is no change created, so there is need to separate the `cj-out` from the `change-out` * there is no change created, so there is need to separate the `cj-out` from the `change-out`
### Send or participate in multiple coinjoins ### Send or participate in multiple coinjoins
* alternate being a Taker and a Maker for the best results * Stretch out in time to avoid timing analyses.
* stretch out in time
* the Taker acts as the coinjoin coordinator * The Taker acts as the coinjoin coordinator
* has the most privacy benefits * has the most privacy benefits
* pays the fees (miner and coinjoin fees) * pays the fees (miner and coinjoin fees)
#### The Taker role #### The Taker role
* send coinjoins to the next mixdepth (acting as a Taker) * the Taker is the initiator and coordinator of the coinjoin - takes the liquidity on offer.
* when sending can merge multiple coins in the coinjoin by sending custom amounts or sweeping * Send coinjoins to a new address in the next mixdepth.
* In a coinjoin multiple coins can be merged by sending custom amounts or sweeping.
#### The Maker role #### The Maker role
* activate the Yield Generator (Maker / Earn) * The Makers are offering their coins to be used in coinjoins - market makers.
* to get selected more often it is best to have a a sizeable Fidelity Bond. See: * Being a Maker can be thought of as providing a service, but also comes with privacy benefits.
* Activate the Yield Generator (Maker / Earn) to start.
* To get selected more often it is best to have a a sizeable Fidelity Bond. See:
* https://nixbitcoin.org/orderbook/fidelitybonds * https://nixbitcoin.org/orderbook/fidelitybonds
* https://github.com/JoinMarket-Org/joinmarket-clientserver/blob/master/docs/fidelity-bonds.md * https://github.com/JoinMarket-Org/joinmarket-clientserver/blob/master/docs/fidelity-bonds.md
* as a Maker the coins will circle through the accounts automatically: * As a Maker the coins will circle through the accounts automatically:
... m0 -> m1 -> m2 -> m3 -> m4 -> m0 -> m1 -> m2 -> m3 -> m4 ... ... m0 -> m1 -> m2 -> m3 -> m4 -> m0 -> m1 -> m2 -> m3 -> m4 ...
* only the `cj-out` propagates to the next account * Only the `cj-out` propagates to the next account.
* the `change-out` stays behind in the same account where the funding utxo was * The `change-out` stays behind in the same account where the funding utxo was.
### Leaving the JoinMarket wallet ### Leaving the JoinMarket wallet
#### When #### When
* the more coinjoins the funds were through the better * The more coinjoins the funds were through the better.
* consider that the privacy benefit from coinjoins is breaking down with time as the peers are gradually exposed or clustered * Consider that the privacy benefit from coinjoins is breaking down with time as the peers are gradually exposed or clustered.
* if deposited only to m0 and followed the steps above all coins in m4 must have been through at least 5 coinjoins * If deposited only to m0 and followed the steps above all coins in m4 must have been through at least 5 coinjoins.
* in a long running, active Maker wallet some funds could have made multiple circles - there is no indication of this by default * In a long running, active Maker wallet some funds could have made multiple circles - there is no indication of this by default
#### How #### How
##### Do ##### Do
* can only send (merge coins) from one account at a time * Can only send (merge coins) from one account at a time.
* send to multiple separate destinations (separate wallets with different purposes - not to be merged later) * Send to multiple separate destinations (separate wallets with different purposes - not to be merged later).
* sweep whole accounts or coins and don't leave change behind * Sweep whole accounts or coins and don't leave change behind.
* fund lightning nodes or send to cold storage via coinjoin(s) * Fund lightning nodes or send to cold storage via coinjoin(s).
* pay with Payjoin to BIP78 compatible wallets to obfuscate the amount sent <https://en.bitcoin.it/wiki/PayJoin_adoption> * Pay with Payjoin to [BIP78 compatible wallets](https://en.bitcoin.it/wiki/PayJoin_adoption) to obfuscate the amount sent.
##### Don't ##### Don't
* avoid sending out the whole amount which entered the wallet a few transactions ago all at once * Avoid sending out the whole amount which entered the wallet a few transactions ago all at once.
* don't merge a change from a previous transaction when sending to a new destination * Don't merge a change from a previous transaction when sending to a new destination.
## More Reading ## More Reading
* https://github.com/JoinMarket-Org/joinmarket-clientserver/tree/master/docs * https://github.com/JoinMarket-Org/joinmarket-clientserver/tree/master/docs