Author: AdamISZ 2022-02-20 18:26:30
Published on: 2022-02-20T18:26:30+00:00
The Bitcoin-dev mailing list has been discussing a new idea called 'path coin'. This idea is based on the ability to transfer control of a UTXO from one party to another without any interaction with the rest of the group, at the time of transfer. The limitations are extreme, but it opens up the possibility for a fully trustless transfer of coins between parties. The first suggestion is that the fidelity bond requirement can be gotten rid of entirely by using an eltoo/D-R-O type mechanism, assuming APOAS. This would mean that no collateral would need to be posted upfront, which was previously a huge impracticality at any scale. The caveat is that this would not remove the timelock aspect, so it would still only be able to operate within a pre-agreed time window.The second suggestion is about jumping over hops. For a fixed path of 100 users, a fixed path between them would provide too little utility due to the factorial blowup. However, if there were longer paths and the ability to jump over, it may be possible with cleverly arranged lists of other paths. One way to achieve this is by using signature adaptors and CTV or a similar covenant to create a fully trustless transfer of control of a UTXO from one party to another with no interaction with the rest of the group, at the time of transfer.
Updated on: 2023-05-22T17:35:22.218232+00:00