nips/704.md

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NIP-704
======
Key derivation for Encrypted Direct Messages
-----------------------------------
`draft` `optional` `author:motorina0`
This NIP defines a way for two clients to derive `one-use-only` keys for sending and recieving `kind:4` events.
## Motivation
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The content of `Direct Messages` [NIP-04](https://github.com/nostr-protocol/nips/blob/master/04.md) is encrypted, but everyone can see who is chatting with whom. This is far from ideal from a privacy perspective.
This NIP describes a way to obfuscate DM communications from the "general public", it does not deal with the relay tracking of clients (for that see [NIP XXX](xxx)).
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## Suggestion
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For the maximum of privacy the two participants of a `Direct Message` exchange SHOULD use a different public key for **each** `kind:4` event.
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This means that each participant has to:
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- build a `direct message parent key` from which it will derive keys to send and keys to recieve (listen for) `kind:4` events
- share this `direct message parent key` with its DM peer
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Each client has a `master` key (denoted with `m`). This key can be the profile `nsec...`, but it is not mandatory.
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## Deriving the direct message parent key
[BIP32](https://github.com/bitcoin/bips/blob/master/bip-0032.mediawiki) is used to derive the paths. A client can generate multiple `direct message parent keys`, one for each peer that it is communicating with.
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Nostr `coin_type'` is `1237'` (see [NIP-06](https://github.com/nostr-protocol/nips/blob/master/06.md)). This NIP defines purpose `25709'` (`dm` -> `0x646d` -> `25709`) for deriving `Direct Messages` related keys.
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`m/25709'/1237'/[<account>']`