A Stroll through Fee-Bumping Techniques : Input-Based vs Child-Pay-For-Parent



Summary:

The conversation discusses various technical approaches to secure transactions and prevent malicious attacks in multi-party contracts and channels. The proposed solution involves using MuSig key for all contract participants with SIGHASH_ANYPREVOUT | SIGHASH_IOMAP for signature commitment, and one pubkey per participant to lockdown the transaction with SIGHASH_ALL. There is also a discussion around the use of fee-bumping UTXO pools for vaults and Lightning Network channels. In the case of Lightning Network channels, it was noted that node operators may not keep enough fee-bumping reserves, which could create a tradeoff between liquidity and security. Additionally, while input-based bumping targeting the tail of the chain works at the transaction level, there are concerns about concurrent state broadcasts and propagation. Smarter tx-relay techniques such as "attach-on-contract-utxo-root" CPFP or blinded CPFP might help solve this issue.


Updated on: 2023-06-14T22:20:12.981500+00:00