Published on: 2019-02-15T15:18:18+00:00
Recently, there was a discussion on the Bitcoin-developer mailing list regarding a proposed proof format that aims to combine multiple proofs and associated metadata in a standardized way. The format, specified in the Protocol Buffers format, is designed to ensure easy verification of proofs even when some of the UTXOs used in the proof are no longer unspent.However, one participant expressed concerns about the format's content, citing previous controversies surrounding its use in BIP70, which might hinder its adoption. Another participant highlighted the lack of sufficient information in the format and suggested the inclusion of a merkle proof.In a related development, a draft of a new Bitcoin Improvement Proposal (BIP) has been introduced, outlining a proposal for constructing proof-of-reserves transactions. The BIP seeks to establish a standard format for creating proofs, enabling the development of general proof-verification software and facilitating integration with existing wallet infrastructure.The motivation behind this proposal is to provide companies managing significant amounts of Bitcoin with a means to prove ownership over their funds without disclosing events publicly, thereby preventing substantial losses. The proposed proof format is designed to be flexible and compatible with existing systems, resembling regular Bitcoin transactions with slight adaptations.To package multiple proofs and relevant metadata, the proposal includes a file format based on Protocol Buffers. Additionally, an extension to BIP 174 PSBT format is suggested to aid signing devices in recognizing proof-of-reserve transactions. Interested individuals can find a proof-of-concept implementation of the PSBT extension in the rust-bitcoin project, along with a work-in-progress implementation for producing and verifying proofs in the described format. It's worth noting that although an invalid transaction cannot be proven by nodes, it may still be cached as a "transaction," occupying memory resources.
Updated on: 2023-08-02T00:26:06.910385+00:00