New BIP to align descriptors, xpub derivation and miniscript

Summary:

Script output descriptors, also known as "output descriptors" or "wallet descriptors," are gaining popularity in the programming community. These descriptors are used in conjunction with miniscript and extended BIP32 keys to create new primitives such as "wallet templates." However, due to historical reasons, the combination of these technologies often leads to redundancy and unspecified caveats.The email highlights several issues with the current implementation of descriptors. For example, the derivation path standards commit to a specific type of script pubkey, but this information is also present in the descriptor itself. Additionally, each public key within the descriptor replicates the derivation information and information about the Bitcoin network. Furthermore, conflicting approaches exist for handling the use of the same signer in different miniscript branches.To address these issues, the email proposes a new BIP proposal that removes the redundancies and inconsistencies. The proposed approach suggests introducing a new BIP44 purpose field that will be used with all descriptor formats. This field will enforce a standardized format for all keys, ensuring that they follow the same standard and use the same network and terminal derivation format. The proposal provides an example of how these standardized descriptors would look like.The email emphasizes the importance of standardization and proposes that wallets unaware of client-side validation may spend UTXOs and burn external states if the meaning of certain segments is not extended through dedicated BIPs.Once the approach is acknowledged by the mailing list, the email author plans to write a reference implementation in Rust and deploy it with the MyCitadel wallet. MyCitadel is currently the only wallet that supports the combination of descriptors, miniscript, and taproot.In conclusion, the email discusses the issues with current script output descriptors and proposes a new approach to address these problems. The author plans to work on a BIP proposal after receiving feedback and seeks Concept (n)ACKs and Approach (n)ACKs from the mailing list.

Updated on: 2023-09-11T01:54:35.958893+00:00