Enhancing Bitcoin's Transaction Privacy With Bloom Filters

Bloom filters are a data structure developed by Burton Howard Bloom in 1970. They only remember whether an object has been added to the filter. In contrast with hash tables, Bloom filters do not store objects. They behave more like sets and do not allow deletions. The probability of a false positive is a function of the size of the filter and the number of hash functions, as we will see in the next section. Bitcoin light clients are using Bloom Filters to make Bitcoin transactions easier to use.