Author: Joost Jager 2023-05-23 07:19:17
Published on: 2023-05-23T07:19:17+00:00
The writer proposes an alternative approach to Bitcoin transaction relay, aimed at addressing limitations in the current peer-to-peer (P2P) system which can negatively impact applications such as Lightning. One such limitation lies in the inability to relay transaction packages, leading to expiring HTLCs and resulting fund losses. The proposed solution is Nostr, an open and decentralized network of relays for public and ephemeral messages between pseudonymous entities. With the standards defined in NIP-89, it becomes possible to broadcast arbitrary Bitcoin transaction packages, overcoming one of the key hurdles in the current relay system. In this alternative relay mechanism, miners would listen for these broadcasted transaction packages and insert them into their local mempool, delegating responsibility of dealing with Denial-of-Service threats to the relays themselves. Implementing Nostr as a relay mechanism also has potential to democratize access to miner mempools, leveling the playing field in the Bitcoin network. A prototype of this concept has been created and a demonstration video is available.
Updated on: 2023-06-16T18:38:44.741413+00:00