<p>IP transactions have been disabled for a long time, and since 0.8 even removed entirely from the source code. The reason was mostly security.</p>

<p>However, there is now work on a <a href="https://gist.github.com/gavinandresen/4120476" rel="nofollow">payment protocol</a>, which is a much more advanced evolution of IP transactions, with built-in (but optional) authentication support.</p>

CC BY-SA 3.0
2013-05-14T23:08:08.210Z
2013-05-14T23:08:08.210Z
Pieter Wuille
<p>It's not safe, so you should not use it.
But you are asking about a possible applications...
You could, for instance, integrate IP payments with a bit torrent client, so the people who send you the most of the data would get an incentive for the service they provide you with.</p>

CC BY-SA 3.0
2013-05-14T19:15:32.093Z
2013-05-14T19:15:32.093Z
Gigi
<p>First, it needs mentioning that <strong>this functionality has already been removed from the original Bitcoin client</strong>.</p>

<p>Here is the <a href="https://github.com/bitcoin/bitcoin/pull/253">GitHub pull request</a> removing this functionality that has been accepted 2 years ago. The wiki page you refer to seems outdated.</p>

<hr>

<p>The only known use for IP transactions I could find is the one <a href="https://github.com/bitcoin/bitcoin/pull/253#issuecomment-1593259">mentioned</a> in the pull request by <a href="https://github.com/gmaxwell">gmaxwell</a>:</p>

<blockquote>
  <p>Aww. The removal of this would mean we can't run a lottery for nodes running the most recent version of bitcoin as an incentive to make people upgrade. :)</p>
</blockquote>

<p>Another use I can come up with myself would be that you could use the DNS system to create a human-readable address to your IP and use that as your payment address. F.e. I could use <code>bitcoin.stevenroose.be</code> and put the IP address of the computer running my Bitcoin client in the DNS table for that record. I could then tell people to send bitcoins to that address. However, this method would require a PC to be permanently running and connected to the network in order to be able to receive bitcoins.</p>

CC BY-SA 3.0
2013-05-14T19:46:16.830Z
@Pacerier I'm sorry, I read your question wrong. Edited my answer.
Steven Roose
CC BY-SA 3.0
2013-05-14T19:15:45.023Z
2013-05-14T19:45:51.610Z
2013-05-14T19:45:51.610Z
Steven Roose
<p>Besides sending BitCoins using wallet addresses, there used to be another way, through IP transactions <a href="https://en.bitcoin.it/wiki/IP_Transactions" rel="nofollow">as described in the wiki</a>.</p>

<p>The disadvantages were obvious (man-in-middle attacks etc).</p>

<p>However, were there <em>any</em> benefits (to the individual or to the <em>whole system</em>) in using IP transactions?</p>

CC BY-SA 3.0
2013-05-14T23:15:50.843Z
You can donate to TOR exit nodes for example ;).
ThePiachu
<transactions><protocol>
What were IP transactions supposed to be useful for?
Pacerier
# What were IP transactions supposed to be useful for?

(Asked by: username_0 on 2013-05-14)

Besides sending BitCoins using wallet addresses, there used to be another way, through IP transactions [as described in the wiki](https://en.bitcoin.it/wiki/IP_Transactions).

The disadvantages were obvious (man-in-middle attacks etc).

However, were there *any* benefits (to the individual or to the *whole system*) in using IP transactions?

**Tags:** transactions, protocol

> **Comments:**
> **username_1**: You can donate to TOR exit nodes for example ;).  

---

## 3 answers

### Answer by username_4 on 2013-05-14. Score: 5 | Accepted answer

First, it needs mentioning that **this functionality has already been removed from the original Bitcoin client**.

Here is the [GitHub pull request](https://github.com/bitcoin/bitcoin/pull/253) removing this functionality that has been accepted 2 years ago. The wiki page you refer to seems outdated.

---

The only known use for IP transactions I could find is the one [mentioned](https://github.com/bitcoin/bitcoin/pull/253#issuecomment-1593259) in the pull request by [gmaxwell](https://github.com/gmaxwell):

> Aww. The removal of this would mean we can't run a lottery for nodes running the most recent version of bitcoin as an incentive to make people upgrade. :)

Another use I can come up with myself would be that you could use the DNS system to create a human-readable address to your IP and use that as your payment address. F.e. I could use `bitcoin.username_4.be` and put the IP address of the computer running my Bitcoin client in the DNS table for that record. I could then tell people to send bitcoins to that address. However, this method would require a PC to be permanently running and connected to the network in order to be able to receive bitcoins.

> **Comments:**
> **username_4**: @username_0 I'm sorry, I read your question wrong. Edited my answer.  

---

### Answer by username_2 on 2013-05-14. Score: 2

IP transactions have been disabled for a long time, and since 0.8 even removed entirely from the source code. The reason was mostly security.

However, there is now work on a [payment protocol](https://gist.github.com/gavinandresen/4120476), which is a much more advanced evolution of IP transactions, with built-in (but optional) authentication support.


---

### Answer by username_3 on 2013-05-14. Score: 1

It's not safe, so you should not use it.
But you are asking about a possible applications...
You could, for instance, integrate IP payments with a bit torrent client, so the people who send you the most of the data would get an incentive for the service they provide you with.


---

