Payjoin: Enhancing Bitcoin Privacy and Efficiency
Payjoin, also known as Pay-to-EndPoint (P2EP), is an advanced Bitcoin transaction method where both the sender and receiver contribute inputs. Unlike regular transactions, this collaborative structure breaks common chain analysis heuristics, making it much harder to trace funds—thus boosting privacy.
It also improves network efficiency by better packing transactions, reducing blockchain bloat without requiring any changes to Bitcoin’s core protocol.
Former BitMEX CEO Arthur Hayes noted that Payjoin’s widespread adoption can “improve the privacy of even the people who don’t use it.” The more users adopt it, the harder it becomes for analytics tools to track anyone.
Developers are now working on making Payjoin easier to integrate into wallets, with performance benchmarks and user-friendly tools. If adopted by Bitcoin Core, it could mark a major step forward in mainstream privacy adoption.
As regulatory pressure grows, tools like Payjoin will be essential to protect user autonomy in the Bitcoin ecosystem.
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