Ark: An Alternative Privacy-preserving Second Layer Solution [combined summary]

• Ark: An Alternative Privacy-preserving Second Layer Solution Antoine Riard 2023-08-06 22:43:55+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution moonsettler 2023-06-11 09:19:18+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution David A. Harding 2023-06-07 18:20:33+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution Burak Keceli 2023-06-07 13:30:07+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution Ali Sherief 2023-05-28 06:02:58+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution David A. Harding 2023-05-27 20:36:47+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution Burak Keceli 2023-05-26 11:56:00+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution jk_ at op.pl 2023-05-26 07:33:42+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution Ali Sherief 2023-05-25 12:12:43+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution David A. Harding 2023-05-24 23:02:40+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution adiabat 2023-05-24 20:20:35+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution Burak Keceli 2023-05-24 07:53:50+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution Burak Keceli 2023-05-24 06:28:08+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution ZmnSCPxj 2023-05-24 00:45:49+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution ZmnSCPxj 2023-05-24 00:40:42+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution G. Andrew Stone 2023-05-23 22:06:02+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution Burak Keceli 2023-05-23 04:31:24+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution ZmnSCPxj 2023-05-22 13:03:00+00:00
• Ark: An Alternative Privacy-preserving Second Layer Solution Burak Keceli 2023-05-22 07:54:03+00:00

Published on: 2023-08-06T22:43:55+00:00

Summary:

ZmnSCPxj raised concerns about the risks involved in designing a non-custodial Layer 2 payment system, emphasizing the need for thorough code testing before deployment. One risk highlighted is the use of 0-conf transactions, which are considered unsafe due to the potential for double-spending. This applies to both Lightning payments and swap-ins.In the case of Lightning, there is a specific concern when opening a zero-conf channel to receive payments. If the channel is not confirmed before revealing the payment's preimage, the Lightning Service Provider (LSP) can take the sender's money and double-spend on the channel. However, Ark provides an alternative solution using Atomic-Time Locked Contracts (ATLCs). With ATLCs, users can receive and forward payments without waiting for on-chain confirmations. Any attempt at double-spending breaks the entire atomicity, preventing the ASP from redeeming senders' vTXOs if they double-spend recipients' vTXOs.Burak and ZmnSCPxj further discuss risks associated with Lightning payments. They note that ASPs who fail to forward HTLCs after double-spending their pool transaction pose a potential issue known as a footgun. In contrast, Ark allows users to pay Lightning invoices with zero-conf vTXOs without waiting for on-chain confirmations. This distinguishes Ark from swap-ins, where users must wait for on-chain confirmations before revealing their preimage of the HODL invoice to avoid double-spending risks.The email thread also includes a request for a detailed architecture write-up encompassing bitcoin scripts, transactions, and L2 protocols. Burak explains how ASPs may fail to forward Lightning payments on the broader network after being replaced in-mempool transactions. However, forwarding HTLCs before double-spending the pool transaction can prevent this issue. Ark's collaborative nature enables users to pay Lightning invoices with zero-conf vTXOs without waiting for on-chain confirmations. In contrast, swap-ins require users to wait for on-chain confirmations before revealing their preimage of the HODL invoice to prevent funds from being stolen through double-spending by the swap service provider.Ark is introduced as a new second-layer protocol that offers an alternative approach to the Lightning network. It allows users to send and receive funds without liquidity constraints and has a smaller on-chain footprint compared to Lightning. The protocol utilizes virtual UTXOs (vTXOs) that exist off-chain and must be spent within four weeks of receipt. Existing vTXOs are redeemed and new ones created during payment transactions. To enhance anonymity, vTXO values are limited to a specific range. Users can acquire vTXOs from others or lift their on-chain UTXOs off the chain for a 1:1 virtual UTXO through a process called lifting. Ark relies on Ark Service Providers (ASPs) as untrusted intermediaries who provide liquidity and charge fees. ASPs create rapid, blinded coinjoin sessions called pools, allowing users to make payments by registering their vTXOs for spending and recipients' vTXOs. Ark can interoperate with Lightning by attaching HTLCs and PTLCs to a pool transaction. Payments are credited every five seconds and settled every ten minutes, providing immediate availability without waiting for on-chain confirmations to spend zero-conf vTXOs.For more detailed information about Ark, refer to the website https://arkpill.me/deep-dive.

Updated on: 2023-08-07T22:25:40.967928+00:00