Check out the image above showing a typical wallet and what it includes.
Signing a transaction with your private key is a solid way to show that it’s been authorized by someone. To check if that signature is legit, you need the matching public key. That’s all I knew about digital signatures until I stumbled upon blind signatures earlier today.
From what I understand, David Chaum, a well-known cryptographer, came up with the idea of blind signatures. They're a type of digital signature that hides messages before they get signed and sent out. I’m not totally clear on the reason behind their creation or what purpose they serve, but I feel like "confidentiality" plays a big role in it.
We all know Bitcoin transactions aren’t completely anonymous; they’re pseudonymous. This means we can see the transactions, but they don’t directly link back to our real identities. All transactions are recorded on the Blockchain, so it’s like the coins aren’t really moving from one wallet to another.
I’m kinda scratching my head about whether blind signatures have any real use in Bitcoin transactions. It seems strange to me to start a message (the transaction input) that’s hidden.
So, I’ve got a couple of questions:
1. Can blind signatures actually be used in Bitcoin transactions?
2. If they can, how do we find them on the Blockchain? I’d love a solid example to help me understand.
I’m totally open to corrections since I see myself as still learning. Please excuse any mistakes, and feel free to share your thoughts. And hey, maybe do your own research after reading this.
Can blind signatures be used in real life?
2 replies 107 views
atlas_2015Senior Member
Posts: 151 · Reputation: 999
#2Apr 16, 2021, 03:55 PM
Blind signatures are used in the ZeroLink coinjoin protocol and in Chaumian ecash mints. The first is non custodial, the second is custodial.
Yes, it's even stated as one of application on BIP 340. See https://github.com/bitcoin/bips/blob/master/bip-0340.mediawiki#user-content-Blind_Signatures. Many Bitcoin CoinJoin protocol also use blind signature.
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