Safer NOINPUT with output tagging



Summary:

The discussion revolves around the use of output tagging and NOINPUT in the context of Eltoo and Statechains. Output tagging allows for explicit and configurable tags to be added by the payer to avoid NOINPUT-related issues. If fungibility is not a concern, the setup output can be tagged, but if it is, every update will require three signatures. The ability to NOINPUT-spend a setup output may not be strictly necessary as confirmed UTXOs are immutable, and smart contracts must anchor to them. The author concludes that output tagging should have no adverse effect on Eltoo and that option b) requiring SINGLEINPUT is an acceptable tradeoff for privacy and complexity.


Updated on: 2023-05-20T18:56:26.659646+00:00