Author: Billy Tetrud 2021-07-02 17:57:54
Published on: 2021-07-02T17:57:54+00:00
Raymo has proposed a protocol to improve Bitcoin circulation, TPS, and privacy. The protocol involves using mobile wallets to send small transactions worth maximum 20,000 Satoshi to exchange for coffee at a bar that aggregates those transactions to one single transaction and sends it to the Bitcoin network. The Sabu security model is used in this protocol where the issuer is the owner of UTXOs which will be used in transactions and is the only person who creates and signs transactions. The Sabu solution is Guarantee transaction where both issuer and creditor cut a part of their output in favor of Bitcoin transaction fee. Email is being used as the user identifier and communication tool, but this may have privacy issues. Users can choose between pure peer-to-peer communication or a more efficient central limited network. Critics suggest making the protocol transport-agnostic.The proposal suggests a way to claw back funds in case of cheating transactions being mined instead of guarantee transactions. A transaction could be signed giving the receiver the ability to override any other transaction using the UTXO, allowing the creditor to use the GT to reallocate the UTXO to themselves. However, this could lead to double-spending and the possibility of transactions expiring after 6 blocks. To make it feasible, it is suggested that revocation only be valid for up to 6 blocks, and the UTXO be marked as opting into this behavior.The Sabu protocol provides an improvement over Lightning where no one has to open or close channels and pay Bitcoin transaction fees, providing more privacy. Transactions are recorded on the Bitcoin blockchain only in case of fraudulent activity by the issuer or if one creditor wants to aggregate multiple debt documents in a single transaction. Sabu's pure peer-to-peer network architecture allows mobile wallets to communicate with each other directly without any central server or routing, making it a huge privacy improvement. Sabu is not a custodial service, and UTXOs are always under the issuer's control unless sent to the Bitcoin network.James Hilliard raises concerns about the assumptions made in the proposal regarding mining and reaching consensus on what defines a valid block. Billy Tetrud has asked for more information on the benefits of this approach compared to alternatives like the lightning network.
Updated on: 2023-06-14T22:51:05.707014+00:00