Published on: 2022-02-20T18:26:30+00:00
The Bitcoin-dev mailing list is currently discussing a new idea called 'path coin', which aims to enable a fully trustless transfer of coins between parties. The first suggestion involves the use of an eltoo/D-R-O type mechanism, assuming APOAS, to eliminate the need for a fidelity bond requirement. This would remove the need for upfront collateral, making it more practical at scale. However, the timelock aspect would still remain, limiting its operation within a pre-agreed time window.Another suggestion revolves around jumping over hops in a fixed path of 100 users. It is believed that longer paths and the ability to jump over can provide more utility, potentially achieved through cleverly arranged lists of other paths. Signature adaptors and CTV or a similar covenant are proposed as a way 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.The discussion also focuses on creating a trustless contract enforcement mechanism. One approach suggested is the use of burn mechanisms to enforce contracts, but concerns are raised about instability due to possible bribery and collusion. Instead, penalties consisting of a payment directly from the attacker to the attacked, which exceeds the amount stolen, are proposed as a stable alternative. This model is similar to the one used in Lightning.The conversation touches on the limitations of PathCoin and the need for further development. Sabu, a protocol with similar goals, is also mentioned but noted to have a vulnerability exploitable by miners. Overall, the objective is to explore potential solutions for creating a trustless contract enforcement mechanism.In the email exchange, AdamISZ introduces the concept of a toy version of sending coins like email, utilizing signature adaptors and CTV or similar covenants for a fully trustless transfer of control of a UTXO. While acknowledging the extreme limitations, AdamISZ shares the idea in hopes of further development by imaginative minds. Billy Tetrud responds by highlighting the instability of penalty via burn approaches, citing game theory challenges and the lack of incentives for honest parties to punish. He suggests that a trustless system can still be achieved through penalties as disincentives, as long as the penalty involves a payment from the attacker to the attacked that exceeds the amount stolen.The discussion also includes references to statechains, payment pools, and the Sabu protocol, all with different tradeoffs in achieving trustless systems. The focus remains on finding innovative solutions for trustless contract enforcement mechanisms.In summary, the Bitcoin-dev mailing list is exploring the concept of 'path coin' for a fully trustless transfer of coins between parties. Various ideas involving eltoo/D-R-O mechanisms, jumping over hops, and penalties as disincentives are being discussed. There is a recognition of limitations and the need for further development, but the aim is to find solutions for creating a trustless contract enforcement mechanism.
Updated on: 2023-08-02T05:25:56.794555+00:00