So now we know the entire strategy of bitcoin functioning and how Bitcoins can be utilized for making all kinds of real transactions. Bitcoins are exchangeable for fiat foreign money via cryptocurrency exchanges and can be utilized to make purchases from merchants and retailers that accept them. Greg Sanders: Yeah, if I can soar in. Mark Erhardt: So I’m wondering, one in every of the problems that appears to jump out once i hear you talking about this is, what if one facet keeps making updates but not concluding it? And we’ve at all times gone again and forth between those, as a result of we don’t know if we should always do a easier model first and watch for later to do a way more complicated version, or if we should just leap to the extra complicated version right now. Because we’ve all the time been discussing the fact that announcing, having the channel announcement point to a specific onchain output, was quite dangerous for privateness and that we might most likely do better. So, those are things that we’ve all the time been just hand-wavy about how we would do this sooner or later. Read More: Amid worth drops and elevated regulation, what’s the way forward for cryptocurrency?

But I don’t suppose we’ll let you have any kind of multiplier, as a result of certainly one of the other concepts was that you may additionally just announce some UTXOs that you simply own, with the proof that you just own them, with a complete value of, for example, 2 bitcoin, after which that would grant you the flexibility to announce as much as X occasions that in channels without having to level to any particular onchain output. I didn’t think it was too unhealthy, but the one key distinction here is that for the cost channels with penalties as at the moment designed, it’s necessitating that you just retailer these secret nonces forever till channel close. These charts are cardinal a part of the whole affair as with them traders are ready to predict the movement close to accuracy. But, knowing that the markets never close is a handy safeguard to have. In case you have another Lightning-like channel specification that you just coded up or a customized channel kind, you can too embody that in this channel announcement and https://youtu.be/M3l77gfP9fs it will just work. That’s why we’re not doing that proper now, and that’s why most individuals will simply keep asserting the output that actually corresponds to the channel in order that when it gets spent, individuals really discover it and can remove it from that graph and know that they cannot route by that channel anymore.

I believe we’re going to keep on with a easy model, the place you enable pointing to any kind of output to pay to your channel. PTLC fixes that by making sure that instead of using the preimage of a SHA256 hash and its hash, we’re going to make use of elliptic curve factors and their non-public keys. This could seem pointless on condition that BIP32 already supplies extended private keys (xprvs) that can be shared between signing wallets. Maybe we can start with t-bast. Can the channel stay open when the UTXO gets spent? And however, how do you be sure that the same UTXO will not be reused for the announcement; and what occurs if that UTXO gets spent? So, will we must be keeping observe of the UTXO really not being moved while it's the stand-in to have introduced the channel? Mike Schmidt: The taproot and MuSig2 channel dialogue considerably leads into the updated channel announcement discussion and how gossip protocol would have to be upgraded as a way to support shifting to P2TR outputs. So, we need to vary that, because we'd like to allow taproot, which implies allowing also input, particularly if we use MuSig2; we don’t need to reveal the internal keys.

And proper now, it’s going to make use of the same cost hash with all these nodes, which signifies that if somebody owns two of the nodes in the path, they are studying data, and this is dangerous for privacy. Right now, everytime you send a fee, this payment goes to go through a number of nodes on the network. Bastien Teinturier: Sure. So proper now, after we introduced the channel on the network, we explicitly introduced node IDs and the Bitcoin keys which can be contained in the multisig 2-of-2, and other people verified that the output that we are referencing is actually locked with the script hash of multisig 2-of-2 of those two keys, so you'll be able to solely use it with scripts that basically observe the format of Lightning channels with out taproot. Mike Schmidt: Murch or t-bast, some other comments on taproot and MuSig2 channels? Mike Schmidt: Go forward, Murch. Mike Schmidt: Next section from the Summit mentioned PTLCs and redundant overpayments. Bastien Teinturier: Okay, so PTLCs are a change that's allowed by taproot and adaptor signatures.