Published on: 2022-03-10T22:31:32+00:00
Antoine and James O'Beirne had a discussion about the implementation of hashchain-based vault designs. Antoine expressed concern about bugs slipping in and affecting the output amount or relative-timelock setting correctness. They also discussed the immutability of flow paths in hashchain-based vaults, the security advantage of trusted hardware, and the need for better fee-bumping needs.They also talked about the idea of a vault scheme for custodians and individual users to function as a single trusted entity. The concern arises when someone unexpectedly hacks the fee keys that encumber all of the anchor outputs. They also discussed the need for space efficiency and the usage of watchtowers for lightning channels and vault schemes.The conversation between Antoine and ZmnSCPxj focused on the design of Taproot-based vaults and their vulnerabilities. They discussed the limitations of hashchain-based vault designs and the advantages of Taproot in terms of flexibility and recoverability. They also addressed the issues of trusted hardware and watchtowers used by both Lightning Network and vault users.The conversation between Antoine and James revolved around the discussion of pre-signed transactions as a security measure for Bitcoin wallets. James argued that bugs can affect the output amount or relative-timelock setting correctness in any sufficiently involved uses of bitcoin script. They also discussed the security advantage of vaults compared to classic multisig setup and the need for an intermediary protocol step for formal authorization of unvault broadcasts.In a Bitcoin-dev email thread, Antoine Riard responded to James O'Beirne's sketch of a CTV-based vault design. He expressed his concern regarding the immutability of flow paths in hashchain-based vault designs and suggested leveraging a presigned transaction data design. Riard also discussed other minor points on vault design, such as introducing an intermediary, out-of-chain protocol step for formal authorization of unvault broadcasts and the safety of using anchor outputs.James O'Beirne created an implementation and write-up of a simple vault design using CTV in response to AJ's skepticism about the readiness of CTV for deployment on mainnet. James believes that this design has several attractive qualities for custody operations of any size.
Updated on: 2023-08-02T05:49:32.008973+00:00