Author: Ruben Somsen 2019-06-04 11:28:26
Published on: 2019-06-04T11:28:26+00:00
Statechains allow the transfer of UTXOs off-chain with the assistance of a Statechain entity without giving them full custodial control over one's coins. Ruben Somsen has proposed utilizing blind signatures to make the entity unaware of what it's signing, which he believes is the more interesting approach. The functionality can be described as having a blind signing server that has two functions users can call. If assuming the server is honest, one can use it to transfer over the signing rights of a private key without actually changing the key itself. The primary envisioned use case is transferring the ownership of a Bitcoin UTXO off-chain using an eltoo tx. Trust can be distributed by turning the server into a multisig threshold key, meaning security can be on par with federated sidechains, and is similar to how ZmnSCPxj replaced the escrow key with a federation in “Smart Contracts Unchained”. By utilizing adaptor signatures, the userSignature can be tied to the blindSignature. The blind signing server functionality is non-specific to Bitcoin; therefore, it'll be useful for non-cryptocurrency related use cases as well. Anything that requires UTXO ownership can be achieved off-chain via Blind Statechains. Coinjoin, Lightning channel opening/adjusting/closing, Discreet Log Contract style bets, cross-chain atomic swaps, etc. Since the blind signing server functionality is non-specific to Bitcoin, it'll be useful for non-cryptocurrency related use cases as well.
Updated on: 2023-06-13T19:25:32.312810+00:00