From: ZmnSCPxj <ZmnSCPxj@protonmail•com>
To: "raymo@riseup•net" <raymo@riseup•net>,
Bitcoin Protocol Discussion
<bitcoin-dev@lists•linuxfoundation.org>
Subject: Re: [bitcoin-dev] Boost Bitcoin circulation, Million Transactions Per Second with stronger privacy
Date: Sun, 20 Jun 2021 00:53:58 +0000 [thread overview]
Message-ID: <6leV9mViysrSOipJqrCM3wbqBOMO2gWI3BuEn0VKmaDf7GpawWyUIWLu-ddypMri7YeVmw94HNSaQYYp8fIkjZ0S3OtFTPQa6h9pkLprKDI=@protonmail.com> (raw)
In-Reply-To: <bea8122aea550f1141170829aac252af@riseup.net>
Good morning Raymo,
> Hi,
> I have a proposal for improve Bitcoin TPS and privacy, here is the post.
> https://raymo-49157.medium.com/time-to-boost-bitcoin-circulation-million-transactions-per-second-and-privacy-1eef8568d180
> https://bitcointalk.org/index.php?topic=5344020.0
> Can you please read it and share your idea about it.
Guarantee Transactions (GT) being higher-fee is ***not*** assured.
Feerates are always bumpable --- the sender of a transaction only needs to directly contact a miner and offer a fee to take a specific transaction on the next block proposal, conditional on the transaction *actually* getting into a block.
Such "side fees" are always possible.
Indeed, the in-transaction fees are "just" a way to anonymously and atomically make that fee offer to miners --- but miners and issuers can always communicate directly without using Bitcoin transaction to arrange a higher fee for a fraudulent Main Transaction (MT).
because of this, you should really treat all unconfirmed transactions --- including MTs and GTs --- as potentially replaceable, i.e. RBFable.
There is no such thing as "RBF disabled", all transactions are inherently RBF-able due to side fees --- it is simply a matter of anonymity, atomicity, and ease-of-use.
---
Every offchain protocol needs *the receiver* as a signatory to any unconfirmed transaction.
Or more strongly, the receiver **must** be a signatory --- the receiver cannot trust an unconfirmed transaction where the spent UTXO has an alternate branch that does *not* have the receiver as a signatory.
See: https://zmnscpxj.github.io/offchain/safety.html
Thus, all safe offchain schemes need to use an n-of-n signing set.
The smallest n-of-n that is still useful is 2-of-2, where one participant is a sender and the other is a receiver.
(1-of-1 is not useful since there is no possible receiver who can sign).
This requires Bitcoin to splinter into lots of 2-of-2 funds, each one a sovereign sub-money (that is *eventually* convertible to Bitcoin), each one a cryptocurrency system in its own right.
However, it so happens that we have a mechanism for transferring value across multiple cryptocurrency systems: the HTLC.
2-of-2 is also the most stable.
This is because *all* signatories of an n-of-n cryptocurrency system need to be online at the same time in order for *any* of them to use the funds in the system.
If any one of them is offline, then the system is unusable.
With 2 participants, there is some probability that one of them is offline and the individual 2-of-2 system is unusable.
With 3 participants, the probability is higher (there are more participants that can be offline).
With 4 participants, higher still.
Thus, the most stable is to split Bitcoin into lots of little 2-of-2 systems, and use HTLCs to transfer funds across the little 2-of-2 systems.
Thus, Lightning Network, which splits Bitcoin into lots of little 2-of-2 cryptocurrency systems (channels), and uses HTLCs to atomically transfer value across them (routing).
Of course, having larger n is better as we need to splinter Bitcoin into fewer funds with larger participant sets.
And we can mitigate the offline-problem by using a two-layer system: we have a n-of-n system (n > 2) that itself splits into multiple smaller 2-of-2 systems.
That way, the Bitcoin layer is split into fewer UTXOs, reducing blockchain resource consumption further.
Thus, Channel Factories hosting Lightning Channels.
Regards,
ZmnSCPxj
next prev parent reply other threads:[~2021-06-20 0:55 UTC|newest]
Thread overview: 41+ messages / expand[flat|nested] mbox.gz Atom feed top
2021-06-16 13:44 raymo
2021-06-18 1:42 ` Erik Aronesty
2021-06-18 13:44 ` Alex Schoof
2021-06-18 20:00 ` raymo
2021-06-19 21:14 ` Erik Aronesty
2021-06-18 13:37 ` Erik Aronesty
2021-06-18 20:22 ` raymo
2021-06-20 0:53 ` ZmnSCPxj [this message]
2021-06-26 21:54 ` raymo
2021-06-27 4:53 ` ZmnSCPxj
2021-06-27 11:05 ` raymo
2021-06-28 5:20 ` ZmnSCPxj
2021-06-28 6:29 ` raymo
2021-06-28 8:23 ` James Hilliard
2021-06-28 9:52 ` raymo
2021-06-28 11:28 ` James Hilliard
2021-06-28 16:33 ` raymo
2021-06-28 15:28 ` ZmnSCPxj
2021-06-28 16:58 ` raymo
2021-06-28 17:58 ` Alex Schoof
2021-06-28 19:07 ` raymo
2021-06-29 21:42 ` ZmnSCPxj
2021-06-30 12:21 ` raymo
2021-06-28 17:29 ` Tao Effect
2021-06-28 17:38 ` raymo
2021-06-28 18:05 ` Ricardo Filipe
2021-06-20 1:59 ` James Hilliard
2021-06-22 18:20 ` Billy Tetrud
2021-07-01 20:11 ` raymo
2021-07-01 20:49 ` Erik Aronesty
2021-07-01 22:15 ` raymo
2021-07-02 17:57 ` Billy Tetrud
2021-07-03 8:02 ` raymo
2021-07-07 3:20 ` Billy Tetrud
2021-07-17 15:50 ` raymo
2021-07-17 18:54 ` Tao Effect
2021-08-08 9:11 ` raymo
2021-08-09 0:03 ` s7r
2021-08-09 16:22 ` raymo
[not found] ` <CAL5BAw2f=xJBO743sTb-Cms80ZLsNNbGPAsWsR_Z3JDF51ssoQ@mail.gmail.com>
2021-08-09 20:22 ` raymo
2022-11-02 17:30 ` Erik Aronesty
Reply instructions:
You may reply publicly to this message via plain-text email
using any one of the following methods:
* Save the following mbox file, import it into your mail client,
and reply-to-all from there: mbox
Avoid top-posting and favor interleaved quoting:
https://en.wikipedia.org/wiki/Posting_style#Interleaved_style
* Reply using the --to, --cc, and --in-reply-to
switches of git-send-email(1):
git send-email \
--in-reply-to='6leV9mViysrSOipJqrCM3wbqBOMO2gWI3BuEn0VKmaDf7GpawWyUIWLu-ddypMri7YeVmw94HNSaQYYp8fIkjZ0S3OtFTPQa6h9pkLprKDI=@protonmail.com' \
--to=zmnscpxj@protonmail$(echo .)com \
--cc=bitcoin-dev@lists$(echo .)linuxfoundation.org \
--cc=raymo@riseup$(echo .)net \
/path/to/YOUR_REPLY
https://kernel.org/pub/software/scm/git/docs/git-send-email.html
Be sure your reply has a Subject: header at the top and a blank line
before the message body.
This is a public inbox, see mirroring instructions
for how to clone and mirror all data and code used for this inbox