Author: ZmnSCPxj 2019-06-06 00:09:28
Published on: 2019-06-06T00:09:28+00:00
A blind signing server with two functions for users to call has been proposed as a way of transferring ownership of a Bitcoin UTXO off-chain. The use of blind signatures makes the entity unaware of what it is signing, and assuming the server is honest, it can be used to transfer the signing rights of a private key without actually changing the key itself. A Decker-Russell-Osuntokun construction ("eltoo") is not strictly required, as the Decker-Wattenhofer construction can be used instead. The trust can be distributed by turning the server into a multisig threshold key, making security on par with federated sidechains. However, there is still the possibility of an exit scam once a few "big enough" swaps are in position to be stolen, trading off earned reputation for cold-stored cash.
Updated on: 2023-06-13T19:26:07.884805+00:00