Bitcoin Hopes and Dreams

So now we know the entire strategy of bitcoin functioning and the way Bitcoins can be utilized for making all sorts of real transactions. Bitcoins are exchangeable for fiat foreign money via cryptocurrency exchanges and can be utilized to make purchases from merchants and retailers that settle for them. Greg Sanders: Yeah, if I can jump in. Mark Erhardt: So I’m questioning, certainly one of the issues that seems to jump out after i hear you speaking about that is, what if one facet retains making updates however not concluding it? And we’ve all the time gone back and forth between these, as a result of we don’t know if we must always do a easier model first and anticipate later to do a way more complicated version, or if we should always just soar to the extra advanced model right now. Because we’ve at all times been discussing the truth that saying, having the channel announcement point to a particular onchain output, was quite bad for privateness and that we may most likely do higher. So, those are issues that we’ve always been just hand-wavy about how we would do that in the future. Read More: Amid value drops and increased regulation, what’s the future of cryptocurrency?

But I don’t think we’ll permit you to have any sort of multiplier, as a result of one among the opposite ideas was that you may also just announce some UTXOs that you simply own, with the proof that you simply personal them, with a complete worth of, for instance, 2 bitcoin, and then that will grant you the ability to announce up to X times that in channels with out having to point to any particular onchain output. I didn’t think it was too unhealthy, however the one key difference right here is that for the cost channels with penalties as currently designed, it’s necessitating that you simply retailer these secret nonces endlessly till channel close. These charts are cardinal a part of the entire affair as with them traders are in a position to predict the movement close to accuracy. But, knowing that the markets never shut is a handy safeguard to have. In case you have one other Lightning-like channel specification that you simply coded up or a customized channel sort, you can also embody that in this channel announcement and it will simply work. That’s why we’re not doing that proper now, and that’s why most individuals will just keep asserting the output that basically corresponds to the channel in order that when it will get spent, individuals truly notice it and might remove it from that graph and know that they can't route by way of that channel anymore.

I think we’re going to persist with a simple model, where you permit pointing to any kind of output to pay in your channel. PTLC fixes that by ensuring that as an alternative of using the preimage of a SHA256 hash and its hash, we’re going to make use of elliptic curve factors and their personal keys. This could seem unnecessary provided that BIP32 already offers extended non-public keys (xprvs) that may be shared between signing wallets. Maybe we can start with t-bast. Can the channel stay open when the UTXO gets spent? And on the other hand, how do you make sure that the same UTXO is just not reused for the announcement; and what happens if that UTXO will get spent? So, will we must be protecting observe of the UTXO actually not being moved whereas it is the stand-in to have announced the channel? Mike Schmidt: The taproot and MuSig2 channel dialogue somewhat leads into the updated channel announcement discussion and https://youtu.be/ how gossip protocol would must be upgraded with a purpose to support moving to P2TR outputs. So, we need to alter that, because we'd like to allow taproot, which implies permitting also enter, especially if we use MuSig2; we don’t want to reveal the inner keys.

And right now, it’s going to make use of the identical fee hash with all these nodes, which implies that if someone owns two of the nodes in the trail, they are learning data, and that is unhealthy for privateness. Right now, everytime you ship a payment, this cost goes to undergo a number of nodes on the network. Bastien Teinturier: Sure. So proper now, after we announced the channel on the network, we explicitly announced node IDs and the Bitcoin keys which are contained in the multisig 2-of-2, and folks verified that the output that we're referencing is actually locked with the script hash of multisig 2-of-2 of these two keys, so you possibly can solely use it with scripts that actually observe the format of Lightning channels without taproot. Mike Schmidt: Murch or t-bast, another feedback on taproot and MuSig2 channels? Mike Schmidt: Go ahead, Murch. Mike Schmidt: Next section from the Summit mentioned PTLCs and redundant overpayments. Bastien Teinturier: Okay, so PTLCs are a change that's allowed by taproot and adaptor signatures.