Bitcoin developer Ben Allen was awarded $100,000 by investment company Maelstrom for the development of Payjoin. Payjoin is a privacy focused tool designed to increase Bitcoin’s scalability.
Maelstrom and Dan Gould will jointly finance Allen’s Payjoin developer kit, as per a 20 May announcement that was shared with Cointelegraph. Bitcoin is allowed in the system.BTCSenders and recipients can use batch transactions to improve scalability, privacy and scalability.
Payjoin, the First proposed Nicolas Dorier, in 2019, in Bitcoin Improvement Proposal (BIP) No. 78. It is the core principle of this system that senders as well as receivers can contribute to transactions.
“Namely that privacy is enhanced and improved consolidation of transaction outputs is achieved, benefiting scalability,” The announcement for Maelstrom states:
Maelstrom’s representative informed Cointelegraph the grantees receive $100,000 in Bitcoin per year, paid out monthly. Allen’s grant is expected to last for one year. Grants are managed without any concrete goals and with a hand-off method.
“We believe grantees may work better with freedom to work on what they wish, rather than being tightly controlled by those who provide the funding.”
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Payjoin in Wallets Near You Soon?
Allen’s goal is to improve Payjoin and make it available on more wallets. He said that the money will let him work full-time on the project.
It is noted that this system poses challenges. The receiver must be online, and the communication flow for the payments are more complicated than non-interactive Bitcoin transaction. Arthur Hayes, former CEO of BitMEX and co-founder of Maelstrom and its chief investment officer Arthur Hayes stated that “improving financial privacy in Bitcoin is extremely important.” Then he added:
“The great thing about Payjoin is that if only a small amount of adoption is achieved, it breaks a key assumption used by financial surveillance companies. The assumption they have is that if a Bitcoin transaction has multiple inputs, all the inputs must all belong to the same entity.”
Maelstrom’s representative told Cointelegraph the company was a new firm. “is keen to support more grantees in the privacy area.” This company actively seeks candidates who have experience with Bitcoin privacy projects.
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You can still enjoy the benefits even if you don’t use it
Hayes noted this “Payjoin adoption improves the privacy of even the people who don’t use it.” Allen stated that he thinks privacy is very important to Bitcoin users in order for them to get a more enjoyable experience, and also control their own financial data.
Allen has told Cointelegraph that he’s a “building out benchmarks to help downstream developers implement Payjoin in individual wallet software as well as expanding test coverage to ensure consistent and reproducible code.” The author explains the importance of encouraging its adoption “is the biggest step we can take for simplifying the experience and encouraging Payjoin adoption by moving the complexities mostly away from the user.”
Maelstrom told Cointelegraph its representative, “a key metric for Payjoin success would be adoption by popular open source Bitcoin wallets.” “In particular if the BitcoinCore wallet ever adopts it, that would be a huge signal of success,” Additions to the list include:
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Source: cointelegraph.com
