RBF Pinning with Counterparties and Competing Interest



Summary:

In this message, the author raises a question about whether pay-to-preimage would work with PTLCs and proposes an alternative solution. They suggest using a pay-for-signature construction where A provides a fund that can only be claimed by leaking knowledge of `s` behind `s * G`. To do this, A creates a new keypair `A[p4s] = a[p4s] * G` and puts a fund into it. A generates an `R[A][p4s] = r[A][p4s] * G`, and computes `R[p4s] = R[A][p4s] + s * G` and `s'[A][p4s] = r[A][p4s] + h(A | R[p4s] | m) * a[p4s]`. The signed message could be a signature to `SIGHASH_NONE`. A reveals publicly (in an `OP_RETURN`) `R[A][p4s]`, `s * G`, `s'[A][p4s]`, and `A[p4s]`. In order to complete the above signature, a third party C has to learn `s` from B. Once learned, the third party can complete the signature and claim the funds. A then learns `s`, from which it can derive `t`. The third party learns about which channel was spent to create the PTLC but never learns `t` or `T`, providing a small privacy bonus.


Updated on: 2023-06-14T00:36:33.420756+00:00