So now we know the whole strategy of bitcoin functioning and how Bitcoins can be utilized for making all kinds of real transactions. Bitcoins are exchangeable for fiat currency via cryptocurrency exchanges and can be used to make purchases from merchants and retailers that settle for them. Greg Sanders: Yeah, if I can leap in. Mark Erhardt: So I’m wondering, one in all the problems that seems to leap out once i hear you talking about that is, what if one side keeps making updates however not concluding it? And we’ve at all times gone back and forth between these, as a result of we don’t know if we should do a less complicated model first and look forward to later to do a much more complicated version, or if we should just jump to the extra complex version proper now. Because we’ve at all times been discussing the fact that announcing, having the channel announcement level to a specific onchain output, was fairly bad for privacy and that we may probably do higher. So, those are things that we’ve at all times been simply hand-wavy about how we might do this sooner or later. Read More: Amid worth drops and elevated regulation, what’s the future of cryptocurrency?

But I don’t assume we’ll permit you to have any form of multiplier, as a result of one of the other concepts was that you possibly can additionally simply announce some UTXOs that you own, with the proof that you simply own them, with a total value of, for example, 2 bitcoin, and then that would grant you the flexibility to announce up to X occasions that in channels with out having to level to any specific onchain output. I didn’t suppose it was too dangerous, however the one key distinction here is that for the fee channels with penalties as at the moment designed, it’s necessitating that you simply retailer these secret nonces endlessly till channel shut. These charts are cardinal a part of the entire affair as with them traders are ready to predict the motion near accuracy. But, realizing that the markets never close is a useful safeguard to have. When you've got another Lightning-like channel specification that you just coded up or a custom channel kind, you too can embrace that on this channel announcement and it'll just work. That’s why we’re not doing that right now, and that’s why most individuals will simply keep saying the output that really corresponds to the channel so that when it will get spent, people actually notice it and can remove it from that graph and know that they can not route through that channel anymore.

I believe we’re going to persist with a simple model, where you allow pointing to any sort of output to pay in your channel. PTLC fixes that by ensuring that instead of using the preimage of a SHA256 hash and its hash, we’re going to use elliptic curve points and their private keys. This could seem unnecessary on condition that BIP32 already offers extended private keys (xprvs) that can be shared between signing wallets. Maybe we can begin with t-bast. Can the channel keep open when the UTXO will get spent? And on the other hand, how do you make it possible for the same UTXO will not be reused for the announcement; and what occurs if that UTXO will get spent? So, will we have to be retaining track of the UTXO truly not being moved while it is the stand-in to have introduced the channel? Mike Schmidt: The taproot and MuSig2 channel dialogue somewhat leads into the up to date channel announcement dialogue and the way gossip protocol would should be upgraded in an effort to support transferring to P2TR outputs. So, we'd like to change that, because we'd like to permit taproot, which means permitting also enter, especially if we use MuSig2; we don’t wish to reveal the internal keys.

And right now, it’s going to use the identical cost hash with all these nodes, which implies that if somebody owns two of the nodes in the trail, they're learning info, and this is bad for privateness. Right now, whenever you send a cost, this fee goes to undergo a number of nodes on the community. Bastien Teinturier: Sure. So right now, once we announced the channel on the network, we explicitly announced node IDs and the Bitcoin keys which might be inside the multisig 2-of-2, and people verified that the output that we're referencing is definitely locked with the script hash of multisig 2-of-2 of these two keys, so you may only use it with scripts that really follow the format of Lightning channels with out taproot. Mike Schmidt: Murch or t-bast, every other comments on taproot and MuSig2 channels? Mike Schmidt: Go forward, Murch. Mike Schmidt: Next section from

Summit mentioned PTLCs and redundant overpayments. Bastien Teinturier: Okay, so PTLCs are a change that is allowed by taproot and adaptor signatures.