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BIP-0069: [trivial] expression #204

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luke-jr merged 1 commit into from
Sep 20, 2015
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BIP-0069: [trivial] expression #204

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Expand Up @@ -33,7 +33,7 @@ Many wallets will place spending outputs first and change outputs second, leakin
Such information should remain private not only for the benefit of consumers, but in higher order financial systems must be kept secret to prevent fraud.
A researcher recently demonstrated this principle when he detected that Bitstamp leaked information when creating exchange transactions, enabling potential espionage among traders. [1]

One way to address these privacy weaknesses is by randomly ordering inputs and outputs. [2]
One way to address these privacy weaknesses is by randomizing the order of inputs and outputs. [2]
After all, the order of inputs and outputs does not impact the function of the transaction they belong to, making random sorting viable.
Unfortunately, it can be difficult to prove that this sorting process is genuinely randomly sorted based on code or run-time analysis, especially if the software is closed source.
A malicious software developer can abuse the ordering of inputs and outputs as a side channel of leaking information.
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