I am really excited about silent payments to a npub.
The undeniable fact is that your npub has a Bitcoin wallet waiting to be discovered (whether you choose to use it, it is up to you).
With Silent Payments, your npub can provide a static address that can be used to generate an untraceable transaction and UTXO, that only you, with the knowledge of your nsec can locate and spend.
As with anything, there are a few tradeoffs, you need to scan the blockchain and test the outputs to see which UTXOs are yours for the taking. But here again, #nostr rises to the challenge - a bitcoin wallet using silent payments could also send a gift-wrapped message with the txid to look for. Now no scanning is required, and the receiving end needs only to scan for incoming DMs and when a payment comes in, locates the txid and sweeps the funds to another UTXO.
I know this works, because I have implemented the same mechanism for #nostr #safebox - what looks like a payment to a lightning address, if the payer knows that it is being sent to another safebox, it skips lightning entirely and sends the funds via gift-wrapped ecash tokens, which the receiver redeems and puts in their wallet. The user thinks it’s a lightning payment - it is not - the clearance used ecash tokens behind the scenes, no lightning channel updates.
This is all great for private payments - the downside is that you need trusted infrastructure to make this work, namely mints and an application service. With silent payments to a npub you get the same privacy, a default wallet, and none of the setup required. The downside is higher fees, which is OK, but most don’t realize the reason lightning payments are cheap, almost free is because someone invested in and is operating an infrastructure to give you those ‘free’ zaps.
Onward!
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