So now we know the entire process of bitcoin functioning and how Bitcoins can be utilized for making all types of real transactions. Bitcoins are exchangeable for fiat forex by way of cryptocurrency exchanges and can be utilized to make purchases from merchants and retailers that accept them. Greg Sanders: Yeah, if I can leap in. Mark Erhardt: So I’m questioning, considered one of the problems that seems to jump out once i hear you talking about this is, what if one aspect retains making updates but not concluding it? And we’ve at all times gone again and forth between these, as a result of we don’t know if we should always do a simpler version first and await later to do a way more complicated model, or if we should simply leap to the more advanced version right now. Because we’ve always been discussing the truth that saying, having the channel announcement point to a specific onchain output, was fairly bad for privacy and that we may probably do better. So,

those are issues that we’ve at all times been simply hand-wavy about how we might try this in the future. Read More: Amid worth drops and increased regulation, what’s the way forward for cryptocurrency?

But I don’t suppose we’ll assist you to have any sort of multiplier, because one of the other ideas was that you possibly can additionally just announce some UTXOs that you simply own, with the proof that you own them, with a total worth of, for example, 2 bitcoin, and then that would grant you the flexibility to announce up to X instances that in channels without having to point to any particular onchain output. I didn’t think it was too dangerous, but the one key difference right here is that for the fee channels with penalties as at the moment designed, it’s necessitating that you just retailer these secret nonces eternally until channel shut. These charts are cardinal a part of the whole affair as with them traders are in a position to predict the movement near accuracy. But, understanding that the markets never shut is a useful safeguard to have. You probably have one other Lightning-like channel specification that you just coded up or a custom channel kind, it's also possible to include that on this channel announcement and it will simply work. That’s why we’re not doing that proper now, and that’s why most people will just keep announcing the output that actually corresponds to the channel so that when it will get spent, people actually discover it and might remove it from that graph and know that they can not route by way of that channel anymore.

I feel we’re going to stick with a simple version, the place you enable pointing to any kind of output to pay for your channel. PTLC fixes that by making sure that as a substitute of utilizing the preimage of a SHA256 hash and its hash, we’re going to use elliptic curve factors and their personal keys. This may seem unnecessary on condition that BIP32 already supplies extended private keys (xprvs) that may be shared between signing wallets. Maybe we can start with t-bast. Can the channel keep open when the UTXO gets spent? And however, how do you guantee that the same UTXO is just not reused for the announcement; and what happens if that UTXO will get spent? So, will we need to be maintaining monitor of the UTXO actually not being moved while it's 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 discussion and the way gossip protocol would need to be upgraded with the intention to help transferring to P2TR outputs. So, we'd like to alter that, because we'd like to permit taproot, which implies allowing additionally input, especially if we use MuSig2; we don’t wish to reveal the internal keys.

And right now, it’s going to make use of the same cost hash with all these nodes, which signifies that if someone owns two of the nodes in the trail, they're learning data, and this is bad for privateness. Right now, whenever you send a cost, this fee goes to go through a number of nodes on the network. Bastien Teinturier: Sure. So right now, after we announced the channel on the network, we explicitly introduced node IDs and the Bitcoin keys which are inside the multisig 2-of-2, and people verified that the output that we're referencing is actually locked with the script hash of multisig 2-of-2 of those two keys, so you can solely use it with scripts that actually comply with the format of Lightning channels without taproot. Mike Schmidt: Murch or t-bast, every other comments on taproot and MuSig2 channels? Mike Schmidt: Go ahead, Murch. Mike Schmidt: Next part from the Summit mentioned PTLCs and redundant overpayments. Bastien Teinturier: Okay, so PTLCs are a change that's allowed by taproot and adaptor signatures.