pull down to refresh

Here we have another proposal for yet another way to scale bitcoin called Depots:

This post presents a protocol for depots that meets all three of the above requirements. A single depot allows many thousands or millions of users to own bitcoin in off-chain Lightning channels.

The initial post on Delving was somewhat garbled because the OP ran into length limits and tried to use code blocks to get around them, but I've linked to a better formatted comment which the OP says contains the whole post.

Depots rely on griefer penalization for their security. In a depot a large number of users partner with an operator, with neither the users nor the operator being able to steal funds. The users can force the operator to lose some funds (and vice versa), but only by losing a proportional expected amount of their own funds. As a result, someone who only pairs with self-interested parties will never be griefed.

Somewhat like Babilonia, this protocol seems to rely on probabilistic outcomes to provide the security guarantees.

To acquire bitcoin in a depot, a user makes a Lightning payment to the operator to purchase a number of channels not exceeding the user’s maximum allocation. Each channel is owned by the user and the operator and has a 1/P chance of being a hit, where P is a large prime (e.g., between a hundred thousand and a billion). The channel can only be put on-chain if it’s a hit, but if it is put on-chain it pays the user P times as much as the user paid for the channel.

I haven't spent enough time on it yet, but I believe that @tuma and @matthewvuk2 will be doing an deep dive on btcinsiders this week.

Also worth noting that this proposal requires at least two op-codes:

Depots require the CTV (CheckTemplateVerify) [BIP-119] and CSFS (CheckSigFromStack) [BIP-348] enhancements to the Bitcoin protocol. Depots are much more efficient if the PC (PairCommit) [BIP-PC], multiply (OP_MUL) and mod (OP_MOD) operators are supported, but they don’t require those operators.

Looking forward to indulging my sick fascination with all things weird and complicated in the world of Bitcoin and learning more about this. Also, John Law is a killer nym. Highly jealous.

~lightning community has covered this

reply

John Law was a real son of a bitch in history times.

reply

Scottish banker, con artist john law? I did not also know of his being a son of a bitch.

reply

I was referring to con artistry. He would have been a great shitcoiner today.

reply
1 sat \ 0 replies \ @Chikasunbeats 19 Sep -30 sats

JohnLaw basically built a self-custody panic button. Hot key gets compromised thief must wait - cold key sweeps. Turns theft from "instant loss" to "you have 7 days to save yourself". This is vaults without the complexity. If we get CTV, this should be default for all new wallets.