Author: ZmnSCPxj 2019-08-08 00:09:11
Published on: 2019-08-08T00:09:11+00:00
The email exchange discusses a solution to the problem of fidelity bonds, which are used to ensure makers on Lightning Network remain honest. One proposed scheme allows revocation of the whole bond by the key controlling even a single TXO in a bond. Another proposal involves using shared ownership rent schemes, where the 'TXO rentier' has a signed timelocked 'backout' transaction that spends the locked TXO and assigns the reward to rentier, and any transaction that spends any TXO in the bond invalidates the bond when presented to takers. The possibility of such revocation increases risk for the renter and would-be co-rentiers and is likely to limit the possible scale of such TXO-renting operation. Another approach involves encrypting data in such a way that it requires sequential operations in order to decrypt. This allows encryption of data, which can be decrypted using a zero-knowledge proof that it contains the signature for a timelocked transaction. Finally, aggregation is still possible to insure by off-blockchain agreements, possibly with legal consequences, and thus entities like exchanges might still be able to aggregate funds and acquire an undeservedly large weight in the fidelity bond system.
Updated on: 2023-06-13T20:21:22.366254+00:00