In a significant boost for privacy in the Bitcoin ecosystem, Ben Allen, a dedicated Bitcoin developer, has secured a $100,000 grant from the investment firm Maelstrom. The funding, announced today, is set to bolster the development of Payjoin—a tool designed to enhance Bitcoin’s privacy and scalability.
A Stealthy Leap Forward
Maelstrom’s decision to fund Allen’s endeavors underscores the growing importance of privacy solutions in the crypto world. The grant will support Allen’s work on the Payjoin developer kit alongside fellow innovator Dan Gould. Payjoin, initially proposed by Nicolas Dorier in 2019 through Bitcoin Improvement Proposal 78, allows both senders and receivers to contribute inputs to a transaction. This seemingly simple tweak has profound implications: it muddles transactional data, making it more difficult for surveillance entities to deduce ownership, while simultaneously improving scalability. This focus on privacy aligns with broader trends in the industry, such as the anticipated growth of Bitcoin DeFi, which is expected to surpass Ethereum and Solana, as discussed in Bitcoin DeFi will have 300M users, beating Ethereum and Solana: Exec.
Arthur Hayes, co-founder of BitMEX and Maelstrom’s chief investment officer, emphasized the strategic significance of Payjoin. “Enhancing financial privacy in Bitcoin isn’t just a nice-to-have; it’s essential,” Hayes stated. “Payjoin’s potential to disrupt the assumptions of financial surveillance companies could be a game-changer.”
Building Bridges in a Fragmented World
The development of Payjoin comes with its own set of hurdles. The system requires the receiver to be online, adding complexity to the payment communication process compared to typical non-interactive Bitcoin transactions. However, Maelstrom seems unfazed by these challenges. The firm has adopted a hands-off approach to the grant, providing Allen the freedom to innovate without the constraints of rigid milestones. “We think giving grantees the liberty to pursue their vision leads to better outcomes,” a Maelstrom representative noted.
Allen, buoyed by the backing, aims to expand Payjoin’s reach into more Bitcoin wallets. “Our goal is to make Payjoin so seamless that users won’t even notice the added privacy they’re gaining,” Allen explained. His plans include developing benchmarks for wallet developers and enhancing test coverage to ensure robust, reliable integration.
The Road to Broader Adoption
The conversation surrounding Payjoin goes beyond just technological advancement; it’s about shifting norms in the Bitcoin community. Allen’s work, though aimed at developers, stands to impact anyone who transacts with Bitcoin. As Hayes pointed out, “Even those who don’t use Payjoin directly benefit from its adoption.” This sentiment echoes the recent support for Bitcoin DeFi initiatives, highlighted by Franklin Templeton’s backing, which aims to provide ‘new utility’ for investors, as detailed in Franklin Templeton Backs Bitcoin DeFi Push, Citing ‘New Utility’ for Investors.
Maelstrom is not stopping with Allen. They’re actively scouting for more talent in the privacy domain, buoyed by the belief that privacy is a cornerstone of Bitcoin’s future. “We’re on the lookout for developers with proven success in Bitcoin privacy projects,” a company spokesperson shared.
Looking ahead, the integration of Payjoin into popular open-source wallets is seen as a crucial milestone. “If Bitcoin Core adopts Payjoin, it would be a significant victory for privacy advocates,” the Maelstrom representative added.
As Bitcoin continues to mature, the conversation on privacy is likely to intensify. Payjoin’s progress will be a bellwether for the broader adoption of privacy tools in the cryptocurrency space. The path is fraught with challenges, but the potential payoffs—both in terms of privacy and scalability—could redefine the landscape of digital transactions. Allen and Maelstrom are leading the charge, and the crypto world is watching closely.
Source
This article is based on: Bitcoin privacy tool Payjoin receives $100K grant from Maelstrom
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
