BIP proposal: Timelocked address fidelity bond for BIP39 seeds



Summary:

In a discussion about fidelity bonds, the analogy of borrowing gold to make an advertisement and then returning it with interest was used. However, it was pointed out that the same gold atoms cannot be reused in two different advertisements, making the analogy not entirely accurate. The use of a fidelity bond is non-rivalrous and thus a better solution for proving non-dilutability. It was suggested that domain separation tags could be used to ensure that fidelity bonds are only used in specific applications. However, this relies on social consensus and an unambiguous definition of what each application is. Finally, it was noted that the lack of convenient software currently prevents the existing systems from becoming joined, but if such software were created, it would render Teleport and JoinMarket effectively as one identity, possibly affecting their usefulness.


Updated on: 2023-06-15T20:10:54.363262+00:00