Wallet Privacy Improvements

@willcl-ark

This is a tracking issue for wallet privacy features mentioned but not completed in bitcoindevkit/bdk#918. Some of these will require #318.

I'm doing some bitcoin core repo archeology to identify privacy related wallet features. I started with the excellent core onboarding wallet write up from @willcl-ark, which mentioned choosing an "appropriate" change script type. I have identified the below features BDK's wallet API should support. Some of these we already support, the rest I'll make new BDK issues for. Please comment if you know of any I'm missing.

Originally posted by @notmandatory in #918

These are my first few days on BDK so still struggling, so please correct me if I'm wrong and do not take what I say as final or correct

Took a look at this one

use P2WPKH change output if any destination is P2WPKH or P2WSH bitcoin/bitcoin#12119

BDK uses descriptors to define address types, while Bitcoin Core uses explicit configuration options (-addresstype and -changetype).

In BDK:

Address types are defined by the descriptor you use when creating the wallet
Change addresses use the same descriptor type as defined for the internal keychain
You cannot dynamically change address types at runtime

So it does not make sense to implement this feature in BDK.

bitcoin/bitcoin#2340 should also be marked as completed

(PR bitcoindevkit/bdk#611 fixes this)

Both bitcoin/bitcoin#12257 and bitcoin/bitcoin#18418 are addressed here bitcoindevkit/bdk#1851

Hi everyone! I'm a developer participating in the BDL (Bitcoin Developer Launchpad) program by Vinteum.

We are currently in the PoC (Proof of Concept) phase, where we are tasked with choosing a project, deeply understanding its mechanics, and contributing to its development. I've chosen to work on the privacy feature: 'avoid mixing different OutputTypes during coin selection' (based on Bitcoin Core PR #24584).

I'm currently studying the BDK codebase and the original Core PR. If anyone has tips, is already looking into this, or has specific thoughts on how this should be integrated into the current bdk_wallet architecture, please let me know!

This issue has been inactive for 180 days and labeled stale, comment to keep it open. It will be closed in 30 days if there is no activity.

I will be working on bitcoin/bitcoin#13756

feat(wallet): add TxBuilder::avoid_reuse to skip reused-address UTXOs

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Wallet Privacy Improvements #28

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Wallet Privacy Improvements #28

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