Re: [bitcoin-dev] assumeutxo and UTXO snapshots

From: Kulpreet Singh <zapfmann@gmail•com>
To: Nicolas Dorier <nicolas.dorier@gmail•com>,
	 Bitcoin Protocol Discussion
	<bitcoin-dev@lists•linuxfoundation.org>
Subject: Re: [bitcoin-dev] assumeutxo and UTXO snapshots
Date: Thu, 4 Apr 2019 12:27:02 +0200	[thread overview]
Message-ID: <CAN8S4uZz_WoAU-TiC4XHq81Vw4-Fzed9xsHzFdLO5m+AHX5JFA@mail.gmail.com> (raw)
In-Reply-To: <CA+1nnrkFWNugSm+o=BrQMLcsO0gNDDCcKRJfDi=5osMZV7o7CA@mail.gmail.com>

Hi Nicolas,

I have a small question about FastSync.

Would it make sense to validate all blocks once FastSync is complete
and BTCPayServer has started accepting payments?

I am aware this will require changes to bitcoind. So this is just an
academic question to figure if there are problems with such an
approach, especially for merchants accepting payments who want to get
started immediately and still want to stay on a Raspberry PI.

Phase 1: FastSync from trusted UTXO set and start accepting payments.
Phase 2: Validate the entire blockchain - this will take X days on
Raspberry PI - but at least in in the end you can fully trust your own
node. In this phase, you'd do IBD, but instead of writing to db, just
verify that the validated block matches the on the the db and move on.

It is a pity leveldb doesn't allow multiple processes to open the db.
If so, phase 2 could have been a different process altogether as well.

Regards
Kulpreet

On Wed, 3 Apr 2019 at 21:23, Nicolas Dorier via bitcoin-dev
<bitcoin-dev@lists•linuxfoundation.org> wrote:
>
> James,
>
> You might be interested by my work which is currently used in production, without any change to bitcoin core.
>
> I properly explain how to verify the utxoset independently.
>
> https://github.com/btcpayserver/btcpayserver-docker/blob/master/contrib/FastSync/README.md
>
> People are using it, since I get around 10 download a day.
> What can be done to help at Bitcoin Core level is actually very minimal.
>
> First, instead of asking signers of by UTXOSet to sign the utxoset hash from gettxoutsetinfo, I ask them to sign the hash of the tarball of my UTXO Set.
>
> The reason is that it is currently impossible to stop BitcoinD on a specific block then asking the serialized hash of the UTXO Set.
>
> So instead, a verifier download the tarball (300 blocks + utxoset at specific height), sync to the latest block, then compare the gettxoutsetinfo of the newly synched node with another trusted node. If it match, the verifier sign the tarball.
>
> I create a new utxoset snapshot every 6 months, so people have time to verify it and add their signatures. (Approximately once every bitcoin core release)
>
> The easiest thing that could be done at Bitcoin Core level does not require any code change, but a change in the release process.
>
> The new process would be to ask to the gitian signers to not only build the source themselves, but also verify a tarball following the procedure I explain in the link above.
>
> More complicated solution like signing the serialized utxoset itself, while possible, would require bothersome code changes.
>
> Nicolas,
>
> On Wed, Apr 3, 2019 at 9:25 AM <bitcoin-dev-request@lists•linuxfoundation.org> wrote:
>>
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>> Today's Topics:
>>
>>    1. BIP: Bitcoin Integrated Address Feature? (nathanw@tutanota•com)
>>    2. Re: BIP: Bitcoin Integrated Address Feature? (htimSxelA)
>>    3. assumeutxo and UTXO snapshots (James O'Beirne)
>>
>>
>> ----------------------------------------------------------------------
>>
>> Message: 1
>> Date: Tue, 2 Apr 2019 18:53:11 +0200 (CEST)
>> From: <nathanw@tutanota•com>
>> To: <bitcoin-dev@lists•linuxfoundation.org>
>> Subject: [bitcoin-dev] BIP: Bitcoin Integrated Address Feature?
>> Message-ID: <LbTxyE4--3-1@tutanota•com>
>> Content-Type: text/plain; charset="utf-8"
>>
>> To whom it may concern,
>>
>> I believe a missing feature in Bitcoin is the ability to have an "integrated address", where the address resolves into a Bitcoin address, and also a transaction message or some other kind of identifier.
>>
>> By having this feature we could enhance the security of exchange cold-wallet systems, by allowing them to easily receive all payments to a single address from an infinite number of customers. We would also greatly simplify the process of setting up and managing exchange cold-wallet systems, because we would eliminate the "sweeping" step required to move multiple customer deposits from a hot address into a single cold address.
>>
>> Although it would be nice to have all customers deposit directly into cold addresses, this quickly becomes impractical when large amounts of customers begin to use exchange wallets as their personal web-wallet, frequently depositing and withdrawing without trading action. You end up needing to have a staff member moving funds away from cold deposit addresses as a full time job - if you wish to handle customer funds in a completely secure manner.
>>
>> Thus we see that most exchanges now use the hot-deposit system, where customers deposit into a hot address that is then automatically swept into a singular cold address, by a service which holds customers private keys online. You can observe this service at work simply by making a deposit to most major exchanges (including the largest exchange Binance), as you will see the funds quickly being "swept" to their cold wallet address in a manner which heavily suggests automation by a program which possesses private keys to the address you are sending funds to. This means there is always the danger of a sophisticated hacker being able to capture private keys to customer deposit addresses (as they are clearly being held online). An integrated address would allow all exchanges using this automated hot-deposit service to easily switch to a far more secure alternative of having all customers depositing directly into their singular cold wallet address.
>>
>> There are several other more minor advantages such a feature would have, including:
>> - Lower fees for exchanges (which could be passed onto customers), by reducing a transaction step out of the deposit-to-withdrawal flow.
>> - Less need for large rescans after loading huge amounts of customer addresses into client software.
>> - Exchanges can more easily provision deposit addresses to new customers in a secure manner, by simply generating a hex or other value, creating an integrated address from the cold wallet address, and then providing this to the customer.
>> - By providing a singular cold address for exchanges publicly, customers can more easily verify that no man-in-the-middle has given them an incorrect address to deposit to.
>> The integrated address could work by combining the Bitcoin address together with some kind of hex or other value, allowing users to choose the amount they wish to deposit themselves, but ensuring their deposits are uniquely trackable.
>>
>> I'm not sure if some kind of functionality already exists in BTC, as I haven't been able to find it. If not, can I submit a proposal to implement this? This feature would be a godsend to all exchange developers if it was widely accepted.
>>
>> Thanks for your time.
>> Regards,
>>
>> Nathan Worsley
>> CTO - LocalCoinSwap.Com
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>> ------------------------------
>>
>> Message: 2
>> Date: Tue, 02 Apr 2019 20:01:34 +0000
>> From: htimSxelA <htimsxela@protonmail•com>
>> To: "nathanw@tutanota•com" <nathanw@tutanota•com>,      Bitcoin Protocol
>>         Discussion <bitcoin-dev@lists•linuxfoundation.org>
>> Subject: Re: [bitcoin-dev] BIP: Bitcoin Integrated Address Feature?
>> Message-ID:
>>         <wtbAF1FAGePDAkY3xkqANuFJtAhEXvz0JeGWnc_OZcGEyFQb-1B590I3IbwtW2FBivur0yONbSQtxaWqiQTJeoDdadivtbGkWwJnLnnzQQE=@protonmail•com>
>>
>> Content-Type: text/plain; charset="utf-8"
>>
>> Hello,
>>
>> I see two immediate issues with this:
>> 1. Increased resource requirements per transaction
>> 2. Embedding identifying information into the blockchain is generally bad for privacy
>>
>> It may help your case to provide some technical details of how you'd like to see this implemented, but without overcoming the issues mentioned above I think this proposal will be a very tough sell.
>>
>> > ...this quickly becomes impractical when large amounts of customers begin to use exchange wallets as their personal web-wallet, frequently depositing and withdrawing without trading action. You end up needing to have a staff member moving funds away from cold deposit addresses as a full time job - if you wish to handle customer funds in a completely secure manner.
>>
>> I am not sure if I see how this issue is solved by your proposal. Assumedly, a human will still need to manually approve cold-wallet withdrawals in order to maintain security. So it seems to me that removing the 'hot-wallet' component of the backend would only amplify the need for human interaction.
>>
>> I assume you are familiar with hierarchical deterministic wallets? They can allow an exchange to assign/identify user deposits based on address derivation path. Keys for deposit addresses can be kept offline if wanted, and a proper implementation of an HD wallet system should also remove the need for rescans of user deposit addresses.
>>
>> There is also a functionality built into Bitcoin that allows a user to prove that they own the private keys to some address: signing an agreed upon message using the private key that controls that address. Unfortunately I don't think this is a workable solution for you, since the majority of modern wallet software does not include this feature-- but perhaps worth mentioning nonetheless.
>>
>> Best,
>> Alex
>>
>> ??????? Original Message ???????
>> On Tuesday, April 2, 2019 9:53 AM, Nathan Worsley via bitcoin-dev <bitcoin-dev@lists•linuxfoundation.org> wrote:
>>
>> > To whom it may concern,
>> >
>> > I believe a missing feature in Bitcoin is the ability to have an "integrated address", where the address resolves into a Bitcoin address, and also a transaction message or some other kind of identifier.
>> >
>> > By having this feature we could enhance the security of exchange cold-wallet systems, by allowing them to easily receive all payments to a single address from an infinite number of customers. We would also greatly simplify the process of setting up and managing exchange cold-wallet systems, because we would eliminate the "sweeping" step required to move multiple customer deposits from a hot address into a single cold address.
>> >
>> > Although it would be nice to have all customers deposit directly into cold addresses, this quickly becomes impractical when large amounts of customers begin to use exchange wallets as their personal web-wallet, frequently depositing and withdrawing without trading action. You end up needing to have a staff member moving funds away from cold deposit addresses as a full time job - if you wish to handle customer funds in a completely secure manner.
>> >
>> > Thus we see that most exchanges now use the hot-deposit system, where customers deposit into a hot address that is then automatically swept into a singular cold address, by a service which holds customers private keys online. You can observe this service at work simply by making a deposit to most major exchanges (including the largest exchange Binance), as you will see the funds quickly being "swept" to their cold wallet address in a manner which heavily suggests automation by a program which possesses private keys to the address you are sending funds to. This means there is always the danger of a sophisticated hacker being able to capture private keys to customer deposit addresses (as they are clearly being held online). An integrated address would allow all exchanges using this automated hot-deposit service to easily switch to a far more secure alternative of having all customers depositing directly into their singular cold wallet address.
>> >
>> > There are several other more minor advantages such a feature would have, including:
>> > - Lower fees for exchanges (which could be passed onto customers), by reducing a transaction step out of the deposit-to-withdrawal flow.
>> > - Less need for large rescans after loading huge amounts of customer addresses into client software.
>> > - Exchanges can more easily provision deposit addresses to new customers in a secure manner, by simply generating a hex or other value, creating an integrated address from the cold wallet address, and then providing this to the customer.
>> > - By providing a singular cold address for exchanges publicly, customers can more easily verify that no man-in-the-middle has given them an incorrect address to deposit to.
>> >
>> > The integrated address could work by combining the Bitcoin address together with some kind of hex or other value, allowing users to choose the amount they wish to deposit themselves, but ensuring their deposits are uniquely trackable.
>> >
>> > I'm not sure if some kind of functionality already exists in BTC, as I haven't been able to find it. If not, can I submit a proposal to implement this? This feature would be a godsend to all exchange developers if it was widely accepted.
>> >
>> > Thanks for your time.
>> >
>> > Regards,
>> >
>> > Nathan Worsley
>> > CTO - LocalCoinSwap.Com
>> -------------- next part --------------
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>> ------------------------------
>>
>> Message: 3
>> Date: Tue, 2 Apr 2019 16:43:11 -0400
>> From: "James O'Beirne" <james.obeirne@gmail•com>
>> To: bitcoin-dev@lists•linuxfoundation.org
>> Subject: [bitcoin-dev] assumeutxo and UTXO snapshots
>> Message-ID:
>>         <CAPfvXf+JS6ZhXUieWVxiaNa4uhhWwafCk3odMKy5F_yi=XwngA@mail•gmail.com>
>> Content-Type: text/plain; charset="utf-8"
>>
>> Hi,
>>
>> I'd like to discuss assumeutxo, which is an appealing and simple
>> optimization in the spirit of assumevalid[0].
>>
>> # Motivation
>>
>> To start a fully validating bitcoin client from scratch, that client
>> currently
>> needs to perform an initial block download. To the surprise of no one, IBD
>> takes a linear amount time based on the length of the chain's history. For
>> clients running on modest hardware under limited bandwidth constraints,
>> say a mobile device, completing IBD takes a considerable amount of time
>> and thus poses serious usability challenges.
>>
>> As a result, having fully validating clients run on such hardware is rare
>> and
>> basically unrealistic. Clients with even moderate resource constraints
>> are encouraged to rely on the SPV trust model. Though we have promising
>> improvements to existing SPV modes pending deployment[1], it's worth
>> thinking about a mechanism that would allow such clients to use trust
>> models closer to full validation.
>>
>> The subject of this mail is a proposal for a complementary alternative to
>> SPV
>> modes, and which is in the spirit of an existing default, `assumevalid`. It
>> may
>> help modest clients transact under a security model that closely resembles
>> full validation within minutes instead of hours or days.
>>
>> # assumeutxo
>>
>> The basic idea is to allow nodes to initialize using a serialized version
>> of the
>> UTXO set rendered by another node at some predetermined height. The
>> initializing node syncs the headers chain from the network, then obtains and
>> loads one of these UTXO snapshots (i.e. a serialized version of the UTXO set
>> bundled with the block header indicating its "base" and some other
>> metadata).
>>
>> Based upon the snapshot, the node is able to quickly reconstruct its
>> chainstate,
>> and compares a hash of the resulting UTXO set to a preordained hash
>> hard-coded
>> in the software a la assumevalid. This all takes ~23 minutes, not
>> accounting for
>> download of the 3.2GB snapshot[2].
>>
>> The node then syncs to the network tip and afterwards begins a simultaneous
>> background validation (i.e., a conventional IBD) up to the base height of
>> the
>> snapshot in order to achieve full validation. Crucially, even while the
>> background validation is happening the node can validate incoming blocks and
>> transact with the benefit of the full (assumed-valid) UTXO set.
>>
>> Snapshots could be obtained from multiple separate peers in the same manner
>> as
>> block download, but I haven't put much thought into this. In concept it
>> doesn't
>> matter too much where the snapshots come from since their validity is
>> determined via content hash.
>>
>> # Security
>>
>> Obviously there are some security implications due consideration. While this
>> proposal is in the spirit of assumevalid, practical attacks may become
>> easier.
>> Under assumevalid, a user can be tricked into transacting under a false
>> history
>> if an attacker convinces them to start bitcoind with a malicious
>> `-assumevalid`
>> parameter, sybils their node, and then feeds them a bogus chain encompassing
>> all of the hard-coded checkpoints[3].
>>
>> The same attack is made easier in assumeutxo because, unlike in assumevalid,
>> the attacker need not construct a valid PoW chain to get the victim's node
>> into
>> a false state; they simply need to get the user to accept a bad
>> `-assumeutxo`
>> parameter and then supply them an easily made UTXO snapshot containing,
>> say, a
>> false coin assignment.
>>
>> For this reason, I recommend that if we were to implement assumeutxo, we not
>> allow its specification via commandline argument[4].
>>
>> Beyond this risk, I can't think of material differences in security
>> relative to
>> assumevalid, though I appeal to the list for help with this.
>>
>> # More fully validating clients
>>
>> A particularly exciting use-case for assumeutxo is the possibility of mobile
>> devices functioning as fully validating nodes with access to the complete
>> UTXO
>> set (as an alternative to SPV models). The total resource burden needed to
>> start a node
>> from scratch based on a snapshot is, at time of writing, a ~(3.2GB
>> + blocks_to_tip * 4MB) download and a few minutes of processing time, which
>> sounds
>> manageable for many mobile devices currently in use.
>>
>> A mobile user could initialize an assumed-valid bitcoin node within an hour,
>> transact immediately, and complete a pruned full validation of their
>> assumed-valid chain over the next few days, perhaps only doing the
>> background
>> IBD when their device has access to suitable high-bandwidth connections.
>>
>> If we end up implementing an accumulator-based UTXO scaling design[5][6]
>> down
>> the road, it's easy to imagine an analogous process that would allow very
>> fast
>> startup using an accumulator of a few kilobytes in lieu of a multi-GB
>> snapshot.
>>
>> ---
>>
>> I've created a related issue at our Github repository here:
>>   https://github.com/bitcoin/bitcoin/issues/15605
>>
>> and have submitted a draft implementation of snapshot usage via RPC here:
>>   https://github.com/bitcoin/bitcoin/pull/15606
>>
>> I'd like to discuss here whether this is a good fit for Bitcoin
>> conceptually. Concrete
>> plans for deployment steps should be discussed in the Github issue, and
>> after all
>> that my implementation may be reviewed as a sketch of the specific software
>> changes necessary.
>>
>> Regards,
>> James
>>
>>
>> [0]:
>> https://bitcoincore.org/en/2017/03/08/release-0.14.0/#assumed-valid-blocks
>> [1]: https://github.com/bitcoin/bips/blob/master/bip-0157.mediawiki
>> [2]: as tested at height 569895, on a 12 core Intel Xeon Silver 4116 CPU @
>> 2.10GHz
>> [3]:
>> https://github.com/bitcoin/bitcoin/blob/84d0fdc/src/chainparams.cpp#L145-L161
>> [4]: Marco Falke is due credit for this point
>> [5]: utreexo: https://www.youtube.com/watch?v=edRun-6ubCc
>> [6]: Boneh, Bunz, Fisch on accumulators: https://eprint.iacr.org/2018/1188
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