Author: Tom Trevethan 2020-03-25 13:52:10
Published on: 2020-03-25T13:52:10+00:00
A team is working on the implementation of statechains, with a specific focus on using the protocol to enable change of ownership of an individual position in an active discreet log contract (DLC) without an on-chain transaction and without requiring the cooperation of the counterparty. One modification proposed for the eltoo-based backup/refund transaction is to use a decrementing nLocktime for backup transactions as the output changes hands. Another modification involves replacing the 2-of-2 multisig output with a single P2(W)PKH output where the public key is shared between the SE and the current owner. The SE and the current owner can then sign with a 2-of-2 ECDSA MPC. The transfer protocol of the key shares can be repeated to transfer ownership to new owners, with each update of the SE key share making the previous key shares invalid even if the current key share is subsequently revealed. The use of nonce prevents participants from determining any information about each other's secret keys. The SE still needs to be trusted to delete the old key share, but this protocol removes the risk of the SE being hacked by a previous owner to steal funds. Feedback on the proposed modifications would be appreciated.
Updated on: 2023-06-14T00:15:19.429162+00:00