Improving JoinMarket's resistance to sybil attacks using fidelity bonds



Summary:

The issue of renting out transaction outputs (TXOs) has been discussed in the Bitcoin community, as it allows attackers to consolidate them and potentially disrupt the market. One proposed solution is for the entity that rents out the TXO to have the ability to revoke its participation in the market, which would also affect other TXOs used in a bond alongside it. Another suggestion involves requiring all locked TXOs to be spendable by any key that controls any other TXO in the 'bond TXO package', which could be possible with taproot technology. However, these solutions may not work if there is no off-chain contractual relationship between the parties involved. Additionally, simply banning muSig - a method that allows for shared ownership of TXOs - may not be sufficient. It has been pointed out that 2P-ECDSA is also possible but more complex.


Updated on: 2023-06-13T20:27:18.320972+00:00