> ABOUT
> Introduction
BIP47 is a Bitcoin protocol enhancement that introduces payment codes, allowing users to share a single identifier that automatically generates fresh addresses for each payment. Combined with PayNyms and Soroban, it creates a layered privacy ecosystem that's robust and easy to use.
At its core, BIP47 helps preserve privacy by decoupling your public identity (PayNym) from the addresses you actually receive funds to. This prevents casual observers or data aggregators from linking payments to your personal financial activity.
More Than Address Reuse
While BIP47 is often described as a solution to address reuse, it is fundamentally about reclaiming financial privacy. One payment code unlocks a suite of tools that collectively protect you from surveillance, profiling, and other risks inherent in public blockchains.
> Address Reuse Prevention
When you receive Bitcoin to the same address multiple times, anyone observing the blockchain can link all those payments together. This means a stranger could track exactly how much you receive, when, and from whom—compromising your privacy as a recipient.
BIP47 protects receiver privacy automatically. Every incoming payment to your PayNym is assigned a fresh, unique address, making it impossible for observers to connect transactions or create a profile of your incoming funds.
In short, BIP47 lets you share one PayNym while keeping your incoming payments private. Each transaction is isolated, unlinkable, and your financial activity remains confidential.
> The Privacy Stack
BIP47 provides the base layer: reusable payment codes. Each subsequent layer adds features that strengthen privacy and usability.
BIP47 Payment Codes
└── Reusable payment identifiers, address rotation
│
▼
PayNyms Soroban
└── Human-readable identity (+username) └── Encrypted peer-to-peer communication
Social discovery & connection No servers, no intermediaries
│ │
│ │
└─────────────────────────┬───────────────┘
│
▼
Cahoots
├── Stowaway (Payjoin)
└── StonewallX2 (Collaborative TX)
Key insight: Each layer enhances the previous. Without BIP47, PayNyms cannot function. Without PayNyms, remote collaboration is difficult. Without Soroban, encrypted coordination is impossible. Together, they make privacy practical and scalable.
> Why Privacy Matters
Bitcoin is "pseudonymous," meaning addresses are public but not directly tied to your real-world identity. This pseudonymity can be fragile. Public addresses can be aggregated by blockchain analytics companies to infer patterns, ownership, and even personal identity.
Common heuristics, like the Common Input Ownership Heuristic (CIOH), assume that multiple inputs in a single transaction belong to the same user. These assumptions are often accurate and widely used in chain analysis, making transactions potentially traceable.
BIP47, combined with collaborative transactions (Cahoots), disrupts these heuristics. By breaking patterns and adding uncertainty, it makes it significantly harder for anyone to track your activity or control your financial information.
In real-world terms, this means protection against:
- Surveillance by corporations, governments, or bad actors.
- Profiling or de-anonymization through repeated address reuse.
- Targeted attacks, phishing, or identity-linked financial exposure.
> Collaborative Transactions & Remote Privacy
Collaborative transactions, often called Cahoots, let multiple participants work together to create a single transaction that is harder to analyze. By adding "noise" and breaking the usual assumptions used by blockchain analysis, these transactions protect your financial privacy in ways that solo payments cannot.
Stowaway (Payjoin)
Stowaway is a type of Payjoin where both sender and receiver contribute inputs to the transaction. Observers see a normal-looking transaction, but they cannot reliably determine which inputs belong to whom. This breaks the Common Input Ownership Heuristic and hides the true flow of funds.
StonewallX2
StonewallX2 is a collaborative transaction where a second participant contributes bitcoin to create a mini-coinjoin effect. The transaction looks complex on-chain, confusing analysis tools and making it extremely difficult to trace the real payment. Your collaborator remains net-neutral, and your payment stays private.
Why this matters: Both Stowaway and StonewallX2 are enabled by PayNyms and coordinated through Soroban. This means you can execute these privacy-enhancing transactions remotely, without meeting anyone in person or relying on a trusted third party. BIP47 payment codes make this seamless: a single PayNym is all you need, while each transaction still uses unique addresses to prevent linkage.
In other words, BIP47 + PayNyms give you the foundation to safely engage in collaborative transactions. Each payment remains unlinkable, your identity is protected, and the user experience is simple—even when coordinating complex privacy tools remotely.
> What This Means For You
🔗 One Simple ID
Share your PayNym ID like +username instead of long addresses. Easy to remember and share.
♾️ Unlimited Addresses
Each payment automatically generates a unique address. No address reuse, no privacy leaks.
🤝 Remote Collaboration
Work with others on transactions without meeting in person. Soroban handles encrypted communication automatically.
🛡️ Analysis Disruption
Collaborative transactions like Payjoin and Stonewall X2 break blockchain heuristics, making your transactions harder to trace.
💼 Enhanced Security
Prevent external observers from linking your transactions or estimating your holdings, protecting your personal financial security.
⚡ Seamless Privacy
All of these protections happen automatically once you share your PayNym. BIP47 ensures privacy without extra effort.
> Getting Started
Steps to participate in the BIP47 privacy ecosystem:
- Get a compatible wallet. Wallets supporting BIP47 and PayNyms. See recommendations below.
- Create your payment code. Generate your BIP47 code and PayNym ID (e.g., +username).
- Share your PayNym ID. Receive payments without exposing real addresses.
- Connect with others. Build a network of trusted PayNyms to enable collaborative transactions.
- Try a Cahoots transaction. Participate in Stowaway or StonewallX2 to enhance your privacy.
