Subject: Re: [bitcoindev] Redefine packages to discourage address reuse

From: Peter Todd <[email-masked]>
Date: Tue, 29 Oct 2024 16:43:11 +0000

On Wed, Oct 23, 2024 at 08:43:50PM -0700, /dev /fd0 wrote:
> Hi Peter,
> 
> > This kind of idea has been proposed multiple times and rejected.
> 
> This is the first time packages are used in bitcoin. My proposal is limited 
> to packages.
> 
> > In this particular case, an especially bad problem with it is there are
> > probably L2 protocols that actually need to reuse addresses in certain
> > circumstances. 
> 
> Can you share an example?

For example in Lightning you can do closes to arbitrary addresses. An
adversary could pick an address that they know you will use in a package
to cause package propagation to fail, effectively resulting in a form of
transaction pinning.

There's no reason to add this complexity for essentially zero gain.

> Packages will be used with covenants, inscriptions etc. apart from L2 
> protocols and I think there would be lot of address-reuse which can be 
> prevented by redefining the packages early.

Packages tell chainalysis services that the transactions are related and
probably created by the same person anyway. Avoiding address reuse in
them doesn't improve privacy meaningfully.

-- 
https://petertodd.org 'peter'[:-1]@petertodd.org

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