You probably saw the image of the Bitcoin genesis block with Satoshi’s hidden message in it over a thousand times yesterday (happy belated bday!).
If you were at all curious how Satoshi actually sent the hidden message in the genesis block then read more below 👇
The message is actually embedded in the first transaction ever made on the Bitcoin blockchain. It is part of a special transaction called a coinbase transaction (and no, nothing to do with the shitcoin casino company – though that is where their name came from!).
Every block mined *must* contain at least one transaction, the coinbase transaction, and it has the ability to generate up to the current block reward new bitcoins. Because it generates new coins, It’s the only transaction that must not spend another transaction’s output.
Because there’s no previous output being spent, the miner can put whatever they want in the transaction’s input. Some miners use it to identify themselves or signal support for features. In Satoshi’s case they chose to insert the infamous bank bailout headline from Jan 3rd 2009.
Want to find this message yourself? Search a block explorer for block 0. Look for the field called ScriptSig on the only transaction in the block. It’s contents are usually displayed as hex so you will need to use a hex to ascii converter to reveal the hidden message!
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The lightning network offers interesting privacy properties compared to on-chain txs. However, the way routing works allows the sender to learn who the recipient is.
A proposal called Route Blinding aims to eliminate this drawback.
Let me break it down for you 👇
In my previous explanation of how routing works we learned that the sender is responsible for building up paths to use for routing a payment to the recipient of the payment.
This requires the sender to know who the recipient is.