Author: Erik Aronesty 2021-10-01 13:40:06
Published on: 2021-10-01T13:40:06+00:00
The discussion revolves around the issue of UTXO set size and dust outputs in Bitcoin. David Harding argues that the addition of more outputs to the UTXO set increases the validation work for full nodes. This would lead to increased costs for miners and contribute towards centralization of mining. To avoid this, a relay policy that discourages economically irrational behavior is proposed. The argument against colored coin protocols being on the Bitcoin chain is presented based on little benefit for tokens with a trusted issuer already. The feasibility of confidential transactions without compromising privacy/allowed transfers is discussed, suggesting that range proofs can be used to prevent dust outputs from becoming part of the blockchain. Additionally, the possibility of a "lightweight" node that ignores dust-sized outputs but still validates POW and other transactions is discussed. However, there is a risk of these nodes getting forked if they accept a series of valid blocks with an invalid dust tx. Nonetheless, this attack seems as expensive as a 51% attack.
Updated on: 2023-06-15T00:50:20.831067+00:00