This kind of thing is long overdue!

I think it’s a great idea to attempt this without soft forking TXO
commitments yet so we can see what works best.


- E

On Wed, Feb 22, 2017 at 5:11 PM, Peter Todd via bitcoin-dev <
bitcoin-dev@lists.linuxfoundation.org> wrote:

> Something I've recently realised is that TXO commitments do not need to be
> implemented as a consensus protocol change to be useful. All the benefits
> they
> provide to full nodes with regard to allowing for old UTXO data to be
> pruned -
> and thus solving the UTXO bloat problem - can be implemented even without
> having miners commit to the TXO commitment itself. This has a significant
> deployment advantage too: we can try out multiple TXO commitment schemes,
> in
> production, without the need for consensus changes.
>
>
> # Reasoning
>
> 1) Like any other merkelized data structure, a TXO commitment allows a
> data set
> - the TXO set - to be securely provided by an untrusted third party,
> allowing
> the data itself to be discarded. So if you have a valid TXO commitment,
> you can
> discard the TXO data itself, and rely on untrusted entities to provide you
> that
> data on demand.
>
> 2) The TXO set is a super-set of the UTXO set; all data in the UTXO set is
> also
> present in the TXO set. Thus a TXO commitment with spent TXO's pruned is
> equivalent to a UTXO set, doubly so if inner nodes in the commitment tree
> commit to the sum-unspent of their children.
>
> 3) Where a outpoint-indexed UTXO set has a uniform access pattern, an
> insertion-ordered TXO set has a delibrately *non-uniform* access pattern:
> not
> only are new entries to the TXO set always appended to the end - an
> operation
> that requires a known, log2(n), sized set of merkle tips - but due to lost
> coins alone we can guarantee that older entries in the TXO set will be less
> frequently updated than newer entries.
>
> 4) Thus a full node that doesn't have enough local storage to maintain the
> full
> UTXO set can instead keep track of a TXO commitment, and prune older UTXO's
> from it that are unlikely to be spent. In the event those UTXO's are spent,
> transactions and blocks spending them can trustlessly provide the necessary
> data to temporarily fill-in the node's local TXO set database, allowing the
> next commitment to be calculated.
>
> 5) By *not* committing the TXO commitment in the block itself, we obsolete
> my
> concept of delayed TXO commitments: you don't need to have calculated the
> TXO
> commitment digest to validate a block anyway!
>
>
> # Deployment Plan
>
> 1) Implement a TXO commitment scheme with the ability to efficiently store
> the
> last n versions of the commitment state for the purpose of reorgs (a
> reference-counted scheme naturally does this).
>
> 2) Add P2P support for advertising to peers what parts of the TXO set
> you've
> pruned.
>
> 3) Add P2P support to produce, consume, and update TXO unspentness proofs
> as
> part of transaction and block relaying.
>
> 4) Profit.
>
>
> # Bootstrapping New Nodes
>
> With a TXO commitment scheme implemented, it's also possible to produce
> serialized UTXO snapshots for bootstrapping new nodes. Equally, it's
> obviously
> possible to distribute those snapshots, and have people you trust attest
> to the
> validity of those snapshots.
>
> I argue that a snapshot with an attestation from known individuals that you
> trust is a *better* security model than having miners attest to validity:
> the
> latter is trusting an unknown set of unaccountable, anonymous, miners.
>
> This security model is not unlike the recently implemented -assumevalid
> scheme(1), in that auditing the validity of the assumed valid TXO
> commitments
> is something anyone can do provided they have a full node. Similarly, we
> could
> ship Bitcoin nodes with an assumed-valid TXO commitment, and have those
> nodes
> fill in the UTXO data from their peers.
>
> However it is a weaker security model, in that a false TXO commitment can
> more
> easily be used to trick a node into accepting invalid transactions/blocks;
> assumed valid blocks requires proof-of-work to pull off this attack. A
> compromise may be to use assumed valid TXO commitments, extending my
> partial
> UTXO set(2) suggestion of having nodes validate the chain backwards, to
> eventually validate 100% of the chain.
>
>
> # References
>
> 1) https://github.com/bitcoin/bitcoin/pull/9484
> 2) [Bitcoin-development] SPV bitcoind? (was: Introducing
> BitcoinKit.framework),
>    Peter Todd, Jul 17th 2013, Bitcoin development mailing list,
>    https://lists.linuxfoundation.org/pipermail/bitcoin-dev/
> 2013-July/002917.html
>
> --
> https://petertodd.org 'peter'[:-1]@petertodd.org
>
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