Author: ZmnSCPxj 2019-10-04 06:45:35
Published on: 2019-10-04T06:45:35+00:00
The email discusses the idea of creating a shorter transaction that points to an existing output with a larger amount, instead of creating a new output. This would aggregate bitcoin to a UTXO which may not be economically viable otherwise. The advantage of this method is that it would enable the capacity of lightning channels to be increased without closing and re-opening a new channel. However, the issue with an account-style approach is when the account is overdrawn, unlike with UTXOs where every spend drains the entire "account". Implementing this approach in current Bitcoin would not be easy, as UTXO-style is deeply ingrained in Bitcoin design and cannot be easily hacked in a softfork. The solution proposed is pay-to-endpoint/payjoin, which refers to a previous UTXO owned by the payee and creates a new UTXO containing the total value of the old UTXO and the value to be transferred from payer to payee. The issues with this method are that the payee has to be online and cooperate, and provide signatures for the old UTXO, adding more blockchain data. Additionally, the new UTXO has to publish a script too. In terms of privacy, this method preserves privacy better than the proposal discussed earlier.
Updated on: 2023-06-13T21:51:07.337513+00:00