Trustless WatchTowers?



Summary:

In a conversation between Laolu and ZmnSCPxj, the idea of implementing a trustless WatchTower is discussed. ZmnSCPxj proposes that in order to implement a trustless WatchTower, the node should generate a fully-signed justice transaction immediately after every commitment transaction is revoked and transmit it to the WatchTower. However, Laolu presents an alternative approach where the client only needs to send out the latest items in the script template and a series of signatures for the various breach outputs. The server can then reproduce the justice transaction that satisfies the latest template and signature. Upfront, free parameters such as breach bonus can be negotiated. Despite this, their current implementation goes back to the old "encrypted blob" approach. This approach allows for the internal payload to be typed, enabling the server to dispatch the proper breach protocol based on the commitment type. The blob approach also supports a "swap" protocol required for commitment designs that allow for O(1) outsourcer state per-client. ZmnSCPxj requests a description of the encrypted blob approach and its intercompatibility with the WatchTower protocol used in lnd.


Updated on: 2023-05-24T23:22:44.478657+00:00