Proposal: Implement HD Address Generation Mechanism for Outgoing Transactions #31254

issue thonypony openend this issue on November 8, 2024
  1. thonypony commented at 7:10 am on November 8, 2024: none

    Please describe the feature you’d like to see added.

    HD addressing is just a system for generating new addresses from a single seed. Currently, it automatically generates new addresses only for incoming transactions.

    Suggestion/Question: Why not implement the same simple system of generating new addresses from a single seed for outgoing transactions? This could enhance privacy by automatically using a new sending address for each outgoing transaction, similar to how new receiving addresses are generated.

    Technical perspective:

    1. For incoming transactions, HD addressing works by:
    • Receiving a transaction
    • Automatically generating a new address for the next receipt
    • Previous address is no longer shown to senders
    1. The proposed mechanism for outgoing transactions would work similarly:
    • When making an outgoing transaction
    • Automatically generate a new address for sending
    • Previous sending address would no longer be used

    This mechanism seems technically feasible and could potentially improve transaction privacy. While understanding the current UTXO model constraints, implementing automatic address rotation for sending could be an interesting privacy-enhancing feature.

    Would love to hear your thoughts on the technical feasibility and potential benefits of such an implementation.

    No response

    Describe the solution you’d like

    No response

    Describe any alternatives you’ve considered

    No response

    Please leave any additional context

    No response

  2. thonypony added the label Feature on Nov 8, 2024
  3. maflcko commented at 7:18 am on November 8, 2024: member

    It is not possible to change a given prevout’s output script.

    Usually the issue tracker is used to track technical issues related to the Bitcoin Core code base.

    General bitcoin questions and/or support requests are best directed to the Bitcoin StackExchange or the #bitcoin IRC channel on Libera Chat, or one of the Bitcoin subreddits, or any other place that you feel is well suited.

    Network-wide consensus and/or P2P changes first need to be discussed with the greater ecosystem, for example https://groups.google.com/g/bitcoindev, or https://delvingbitcoin.org/. Also, they need a BIP to be implemented in Bitcoin Core and other software that connects to the bitcoin P2P network.

  4. maflcko closed this on Nov 8, 2024


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