On Tue, Jun 28, 2016 at 11:33 PM, Eric Voskuil <e...@voskuil.org> wrote:
> I don't follow this comment. The BIP aims quite clearly at "SPV" wallets as 
> its justifying scenario.

It cites SPV as an example, doesn't mention bloom filters.. and sure--
sounds like the bip text should make the

>> Without something like BIP151 network participants cannot have privacy for 
>> the transactions they originate within the protocol against network 
>> observers.
>
> And they won't get it with BIP151 either. Being a peer is easier than 
> observing the network.

Not passively, undetectable, and against thousands of users at once at low cost.

> If one can observe the encrypted traffic one can certainly use a timing 
> attack to determine what the node has sent.

Not against Bitcoin Core, transactions are batched and relayed in
sorted order.  (obviously there are limits at what this provides;
ironically, the lack of link encryption has been used to argue against
privacy preserving relay behavior)

>> Even if, through some extraordinary effort, their own first hop is 
>> encrypted, unencrypted later hops would rapidly
>> expose significant information about transaction origins in the network.
>
> As will remain the case until all connections are encrypted and 
> authenticated, and all participants are known to be good guys. Starting to 
> sound like PKI?

Huh? The first and subsequent hops obscures the origin and timing.

>> Without something like BIP151 authenticated links are not possible, so
>> manually curated links (addnode/connect) cannot be counted on to provide 
>> protection against partitioning sybils.
>
> If we trust the manual links we don't need/want the other links. In fact 
> retaining the other links enables the attack you described above. Of course 
> there is no need to worry about Sybil attacks when all of your peers are 
> authenticated. But again, let us not ignore the problems of requiring all 
> peers on the network be authenticated.

Don't need and want them for what?  For _partitioning_ resistance,
you are not partitioned if you have one honest connection to the
functional network. Additional peers purely reduce your partition
vulnerability-- so long as an active network attacker isn't
itercepting all your connections out.

For privacy, you have improve transaction privacy so long as your
transaction isn't initially relayed to a malicious peer-- but
malicious peers can lie further out because transit nodes obscure the
order of message creation.  Bitcoin Core currently relays transactions
first and more frequently to outbound and whitelisted peers.

> Maybe I was insufficiently explicit. By "relies on identity" I meant that the 
> BIP is not effective without it. I did not mean to imply that the BIP itself 
> implements an identity scheme. I thought this was clear from the context.

I understood that, but my point was that Bitcoin cannot be used at
all_unless users have secure communication channels to share
addresses.

> then there is no reason to expect any effective improvement, since nodes will 
> necessarily have to connect with anonymous peers.

They're not required to _only_ connect with anonymous peers. And
partition resistance requires that you have any one good link.

> Anyone with a node and the ability to monitor traffic should remain very 
> effective.

Not via passive observation.

> Defining an auth implementation is not a hard problem, nor is it the concern 
> I have raised.

Glad you agree.

We seem to be looping now. Feel free to not implement this proposal,
no one suggests making it mandatory.
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