Gavin Andresen - 2010-08-16 14:11:38

RE: could you make through adroit use of the scripting language:  you could hide the receiving address, but not the amount.

Bitcoin needs to see TxOut amounts so it can add them up and make sure the transaction includes any necessary fees.

And to make sure the transaction is valid, although I suppose it could allow invalid-but-not-yet-decrypted transactions into the block chain, and just not allow them to be ever spent (it'd be a complicated way of deleting BTC).  But that makes me extremely nervous-- it seems to me it just makes things more complicated and more likely to be exploited.

Also, this: "All the network nodes try to decrypt the message with each of their public keys" ... won't scale.  Busy nodes will have more and more public keys over time (as they give out different receiving addresses for each purchase transaction), and trying them all whenever an encrypted transaction comes over the wire will take an ever-increasing amount of time.