Dear participants of the Dinastycoin ecosystem,
We would like to inform you that with the new Dinastycoin blockchain we will be phasing out long payment IDs. Long payment IDs are detrimental to privacy and a source of negative user experience (as well as additional support work for services). Services will have to upgrade to either integrated addresses or subaddresses. Note, however, that there is some discussion about phasing out integrated addresses as well. Therefore, services are, to avoid having to potentially perform additional work, encouraged to upgrade to subaddresses directly.
Long payment IDs will be phased out because they have several salient drawbacks. First, long payment IDs are detrimental to privacy insofar as they can potentially link the transactions of a user in case of reusage. Second, long payment IDs have to be attached separately to a transaction. This is inconsistent with conventional cryptocurrency transactions and therefore unintuitive for the user. As a result, users occasionally forget to attach the long payment ID when sending their transaction to a service and thus have to go through support to ‘recover’ their funds. Third, it logically follows from the previous point that long payment IDs cause additional support work for services. Fourth, only one long payment ID can be attached to a transaction. Thus, services cannot batch withdrawals of multiple users specifying a long payment ID. By contrast, subaddresses have no such restriction and withdrawals can thus all be batched.
In sum, payment IDs have serveral salient drawbacks and will therefore be phased out. Services are recommended to upgrade to subaddresses as soon as possible. Subaddresses essentially function similar to Bitcoin HD wallets and should thus be relatively straightforward to implement. Furthermore, subaddresses are managable from a resource point point of view.