Bitcoin Hopes and Goals

So now we all know the entire means of bitcoin functioning and the way Bitcoins can be utilized for making all types of real transactions. Bitcoins are exchangeable for fiat foreign money by way of cryptocurrency exchanges and can be used to make purchases from merchants and retailers that settle for them. Greg Sanders: Yeah, if I can soar in. Mark Erhardt: So I’m questioning, certainly one of the issues that seems to jump out once i hear you speaking about that is, what if one side keeps making updates however not concluding it? And we’ve always gone back and forth between these, as a result of we don’t know if we should do a less complicated version first and watch for later to do a much more complex version, or if we must always just leap to the more advanced model proper now. Because we’ve always been discussing the truth that saying, having the channel announcement level to a particular onchain output, was quite unhealthy for privacy and that we might probably do higher. So, those are issues that we’ve all the time been just hand-wavy about how we'd do this in the future. Read More: Amid worth drops and elevated regulation, what’s the way forward for cryptocurrency?

But I don’t suppose we’ll allow you to have any type of multiplier, as a result of one in every of the opposite ideas was that you can also just announce some UTXOs that you simply own, with the proof that you just personal them, with a total worth of, for example, 2 bitcoin, and then that may grant you the flexibility to announce up to X occasions that in channels with out having to level to any particular onchain output. I didn’t think it was too unhealthy, however the one key difference right here is that for the fee channels with penalties as at present designed, it’s necessitating that you simply retailer these secret nonces forever until channel close. These charts are cardinal part of the entire affair as with them traders are in a position to predict the movement close to accuracy. But, realizing that the markets never shut is a useful safeguard to have. In case you have another Lightning-like channel specification that you coded up or a custom channel sort, you too can embody that in this channel announcement and it'll just work. That’s why we’re not doing that right now, and that’s why most people will simply keep saying the output that actually corresponds to the channel so that when it gets spent, folks truly notice it and may remove it from that graph and know that they can not route by way of that channel anymore.

I think we’re going to stick with a easy version, where you allow 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 points and their personal keys. This may seem pointless on condition that BIP32 already supplies extended personal keys (xprvs) that can be shared between signing wallets. Maybe we are able to begin with t-bast. Can the channel stay open when the UTXO gets spent? And alternatively, how do you ensure that the identical UTXO just isn't reused for the announcement; and what happens if that UTXO will get spent? So, will we should be holding observe of the UTXO actually not being moved whereas it's the stand-in to have announced the channel? Mike Schmidt: The taproot and MuSig2 channel discussion somewhat leads into the up to date channel announcement dialogue and how gossip protocol would need to be upgraded to be able to help transferring to P2TR outputs. So, we need to alter that, because we need to allow taproot, which suggests permitting additionally enter, particularly if we use MuSig2; we don’t need to reveal the inner keys.

And right now, it’s going to make use of the identical fee hash with all these nodes, which signifies that if somebody owns two of the nodes in the path, they are learning information, and that is unhealthy for privateness. Right now, everytime you send a cost, this payment goes to undergo a number of nodes on the network. Bastien Teinturier: Sure. So right now, when we announced the channel on the community, we explicitly introduced node IDs and the Bitcoin keys which are inside the multisig 2-of-2, and people verified that the output that we are referencing is actually locked with the script hash of multisig 2-of-2 of these two keys, so you can only use it with scripts that basically comply with the format of Lightning channels without taproot. Mike Schmidt: Murch or t-bast, every other feedback on taproot and MuSig2 channels? Mike Schmidt: https://youtu.be/r6FnaIfl3qk Go ahead, Murch. Mike Schmidt: Next section from the Summit mentioned PTLCs and redundant overpayments. Bastien Teinturier: Okay, so PTLCs are a change that is allowed by taproot and adaptor signatures.