eltoo towers and implications for settlement key derivation



Summary:

In a message to the Lightning-dev mailing list, Conner Fromknecht has suggested that the chain of noinput/anyprevout transactions is broken as soon as the signers are online and can interactively bind and sign without noinput/anyprevout. Responding to a post by Rusty on the same mailing list, ZmnSCPxj expresses confusion and questions whether it is possible to spend from a particular update transaction without using NOINPUT, since the update transaction has no fixed txid until it commits to a particular output-to-be-spent. Since settlement transactions are constrained to spend a particular update transaction, they must use NOINPUT as well. Conner agrees with this understanding and adds that any presigned descendants of a NOINPUT txn must also use NOINPUT as well. This chain must continue until a signer is online to bind a txn to a confirmed input. The unique settlement keys thus prevent rebinding of settlement txns since NOINPUT with a shared script would be too liberal.


Updated on: 2023-06-02T21:55:40.305088+00:00