Simple attack, Bob says hey Alice additionally to the 1 BTC you owe me give me 0.9 BTC off-chain or I will punish you and you will lose another bitcoin. A rational actor would go for that deal but even if not it hurts Alice more. And what can she do: defense always overrides status by definition.
Therefore the network soon runs out of Alices.
0 sats \ 1 reply \ @fiksn 1 Apr
Trick is Bob needs to provably "defuse" defense or else the blackmail won't work.
Which means just a tx with a new input from Alice and new output for Bob beside the original ones. Bob can prepare everything and just give it to Alice to add their 0.9 input and sign. So either he sees the thing confirmed in an hour or so or he broadcasts defense and everything goes boom.
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I didn't want to go into technical details yet.. but imagine that the defense transaction looks similar to commitment transaction in lightning.
In our example there will be two outputs:
  1. 8 BTC for Alice - spendable without restrictions
  2. 0.5 BTC for Bob
    • Alice can spend immediately if she has some secret from Bob (this way can Bob invalidate this transaction)
    • Bob can spend after CSV_delay
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