Author: Jeremy 2021-09-17 16:58:45
Published on: 2021-09-17T16:58:45+00:00
A proposal called Inherited IDs (IIDs) has been suggested as an alternative to BIP-118. The proposal is a softfork that alters signature rules for calculating certain signatures, and supports signatures that commit to the parent transaction's IID instead of its transaction ID. Unlike BIP-118, IIDs do not allow floating transactions but they are safer and more scalable than those proposed in BIP-118. Transactions signed using IIDs cannot be used more than once or in an unanticipated location, thus making them much safer than a floating transaction.The IID proposal does not support the eltoo protocol but it does support a 2-party channel protocol called 2Stage that has constant worst-case on-chain costs and eliminates the need for watchtowers. Additionally, IIDs support channel factories that are far more scalable and powerful than any previously proposed channel factories. These channel factory protocols make critical use of IIDs and do not appear to be possible with BIP-118.The paper also includes three options for how IIDs could be added to Bitcoin via a softfork. If anyone finds the IID proposal valuable, they are requested to pick the best option (or invent an even better option) for adding IIDs to Bitcoin and create a BIP for that option. Hopefully, IIDs will provide a safe way to dramatically scale Bitcoin while improving its usability.References have been provided for BIP-118, scaling Bitcoin with Inherited IDs by John Law, eltoo, the Bitcoin Lightning Network, and scalable funding of Bitcoin micropayment channel networks. Acknowledgments have been given to Ruben Somsen and Jeremy Rubin for their helpful comments, and to Bob McElrath for his original brainstorm that led to the creation of the IID concept.
Updated on: 2023-05-22T15:49:02.656154+00:00