Author: Oleg Andreev 2017-04-13 00:43:50
Published on: 2017-04-13T00:43:50+00:00
The proposed sketch for implementing Confidential Transactions on the Bitcoin network involves a new accounting model, new representation of numbers and range proofs per number. The proposal aims to make the change as compatible as possible by sticking confidential values right into the existing transaction structure, introducing two new script versions (version A and version B), and implementing six new soft fork rules. The proposal uses the same UTXO set and can be co-authored with plaintext inputs/outputs using legacy software. Additionally, the proposal improves scalability by compressing on-chain transactions using mimblewimble cut-through. However, introducing more complex support from miners to respect and merge outputs representing "plaintext value bank" would require further development of non-malleable TxID that excludes miner-adjustable export/import outputs. The proposal also creates an incentive for miners to support the feature and work on improving performance of rangeproof validation by allowing them to sell confidential coins at a premium.
Updated on: 2023-06-12T00:06:36.373928+00:00