Published on: 2020-08-25T15:24:46+00:00
A new proposal has been put forward by Jule.Adka to address the scalability and privacy concerns surrounding Bitcoin transactions. The proposal suggests using a Mekelized Output Set and the p2mos (pay to Mekelized Output Set) standard as a solution. Instead of listing all the outputs, the proposal recommends only specifying a Markle root. When a coin is spent, the user provides a Merkle Path and proof that their output exists. This approach significantly reduces the amount of data generated by transactions, resulting in a 49 bytes-wide output set regardless of the number of outputs. Only peers have knowledge of the number and value of the outputs, enhancing privacy. The proposal also resolves privacy issues related to Equal-output CoinJoin and different output types.To implement this proposal, an opcode may be required to direct nodes to the witness data for finding the actual output. The amount is preserved for compatibility and mining fee calculations, even though miners are unaware of the locked value. The fee calculus remains unchanged. By utilizing p2mos, information about outputs remains private until they are spent. This not only saves space in blocks but also reduces the size of transactions for SPV nodes, without considering the witness data. However, implementing this approach as a soft-fork presents challenges.Old nodes can still accept this type of transaction if it is made as "anyone can spend" in the current consensus. However, on a second spend, the node will interpret it as a double spend and invalidate it. While the proposal offers significant benefits, there are some drawbacks. It requires increased coordination between wallets, poses computational challenges for validators, and necessitates additional bandwidth for downloading the witness data. Nonetheless, retro compatibility is possible with implementation as a soft-fork.
Updated on: 2023-08-02T02:38:41.576826+00:00