A proposal for Full RBF to not exclude Zero Conf use case

Summary:

The use of 0-conf on Bitcoin with its understood risks is a significant use case that doesn't change with full RBF. The risk profile will remain the same and observation of the fee paid, history of doing business with the customer, and transaction size are all needed. However, currently, 0-conf recognition is done without any KYC on the payor, including activities such as gaming, non-custodial trading, and applications. In general, OptinRBF is not possible to offer 0-conf since as soon as it is recognized, it can be double-spent. Full RBF would make all transactions just like OptinRBF, but FullRBF with FSS implemented will still enable 0-conf acceptance.Daniel Lipshitz from GAP600 clarified their unique trx hashes queried to their platform, which were not accurate initially. For November 2022, the total queried unique bitcoin address was circa 1.5m trxs, unique Bitcoin trx hashes queried was circa 500k, and USD value was circa 220m. For December 2022, the total queried unique bitcoin address was circa 1.7m trxs, unique Bitcoin trx hashes queried was circa 500k, and USD value was circa 200m. There are further merchants and service providers who enable 0-conf on Bitcoin who are not working via their platform. Daniel Lipshitz believes that they are significant and that 0-conf on Bitcoin with its understood risks is a significant use case.When asked for information on what companies are actually using their service, GAP600 did not provide any names but referred to Max CEO from Coinspaid, who is available to discuss further and may choose to share further information on the merchants they support.Regarding FullRBF and the need for swop limitation, it seems to be well covered under two options: FullRBF with FSS implemented and Opt-in RBF, which offers enough coverage to mitigate. 0-conf is a long-standing and significant use case that should not be ignored, even though it may not be liked by some actors in Bitcoin. Its demise should be viewed as being a major and unnecessary cost to FullRBF as currently implemented. There is also ongoing debate about the need for full RBF.

Updated on: 2023-06-16T03:24:59.268880+00:00