Deriving channel keys deterministically from seed, musig, and channel establishment v2



Summary:

In a conversation between ZmnSCPxj and SomberNight, they discuss the privacy implications of using a static key as payment_basepoint for all channels. The possibility of tweaking this approach for each channel is also suggested, but it requires a counter to avoid reuse between multiple channels with the same counterparty. Additionally, users should be able to open new channels after restoring from seed, which may result in a need for a random nonce instead of a counter. An OP_RETURN containing the encrypted counterparty node id is also mentioned as an optional solution, but it is not ideal.


Updated on: 2023-06-03T05:51:22.915768+00:00