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authorZmnSCPxj <ZmnSCPxj@protonmail.com>2019-08-06 23:33:19 +0000
committerbitcoindev <bitcoindev@gnusha.org>2019-08-06 23:33:31 +0000
commit1c5c69e118f136bfea88978496a48603afb83a61 (patch)
treed4053fa1563931b54baf7aee9df4106619c901b1
parent7d07360ed29c66f28baf6747216fc06e4a84a590 (diff)
downloadpi-bitcoindev-1c5c69e118f136bfea88978496a48603afb83a61.tar.gz
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Re: [bitcoin-dev] Improving JoinMarket's resistance to sybil attacks using fidelity bonds
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+Date: Tue, 06 Aug 2019 23:33:19 +0000
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+To: Dmitry Petukhov <dp@simplexum.com>,
+ Bitcoin Protocol Discussion <bitcoin-dev@lists.linuxfoundation.org>
+From: ZmnSCPxj <ZmnSCPxj@protonmail.com>
+Reply-To: ZmnSCPxj <ZmnSCPxj@protonmail.com>
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+In-Reply-To: <20190807023742.73750ba3@simplexum.com>
+References: <985792b1-e7aa-677b-a7a1-6a5f672da884@riseup.net>
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+Subject: Re: [bitcoin-dev] Improving JoinMarket's resistance to sybil
+ attacks using fidelity bonds
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+
+Good morning all,
+
+It might be useful to remember that there exists pressure to pool proof-of-=
+work due to tiny non-linearities caused by Proximity Premium and Variance D=
+iscount flaws.
+Similarly, any non-linearity in any fidelity bond scheme exerts the same po=
+oling pressure.
+Deliberately increasing the non-linearity to V^2 worsens the pooling pressu=
+re, not lessens it.
+
+(I wonder if instead going the opposite way and doing V^0.999 might work be=
+tter; I have not figured all the implications of such a scheme and leave it=
+ to the reader.)
+
+> Unfortunately, both described schemes fail the same way as
+> 'require TXOs to be consolidated by the owner', by the fact that with
+> muSig, shared ownership of TXO is possible, as explained by ZmnSCPxj in
+> [1]. 2P-ECDSA is also possible, just more complex, so just saying 'ban
+> musig for the bonds' is not the answer, I believe.
+
+If my understanding is correct, efforts to expand ECDSA to more than two-pa=
+rty n-of-n "true" multisignatures already are ongoing.
+
+One might attempt to use transaction malleability as a protection, and requ=
+ire that transactions that put up bond TXOs should spend from at least one =
+***non***-SegWit output, so that the scheme as described fails (as the fund=
+ing txid is malleable after-the-fact).
+
+But the scheme as described only considers ways to securely aggregate *with=
+in* the Bitcoin universe.
+
+I have recently learned of a spacce called the "real world", wherein appare=
+ntly there exist things as "contract law".
+It seems to me this "contract law" is a half-baked implementation of Bitcoi=
+n cryptographic smart contracts.
+By what little I understand of this "contract law", it would be possible fo=
+r an aggregator to accept some amount of money, with a promise to return th=
+at money in the future with some additional funds.
+If the aggregator fails to uphold its promise, then some (admittedly centra=
+lized) authority entity within the "real world" then imposes punishments (a=
+pparently inspired by similar mechanisms in Lightning Network) on the aggre=
+gator.
+Such arrangements (accepting some money now with a promise to return the mo=
+ney, plus some interest earned, in the future) apparently already exist in =
+this "real world", under the name of "time deposits".
+
+
+Regards,
+ZmnSCPxj
+
+>
+> [1]
+> https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2019-August/01721=
+7.html
+>
+> =D0=92 Wed, 7 Aug 2019 01:55:41 +0500
+> Dmitry Petukhov dp@simplexum.com wrote:
+>
+> > =D0=92 Mon, 5 Aug 2019 20:04:26 +0100
+> > Chris Belcher belcher@riseup.net wrote:
+> >
+> > > So what's needed is a way to make renting out TXOs impossible or
+> > > very difficult.
+> >
+> > You can make renting the TXOs risky for the attacker. Make it so that
+> > the entity that rented out the TXO can revoke the participation of
+> > said TXO in the market, by publishing some special signature. That
+> > act of revocation can also mean revocation of all other TXOs that
+> > were used in a bond alongside it. This way, any entity that wants to
+> > spoil an attacker's consolidation via rent, can rent out its TXO to
+> > the attacker, and then revoke it, spoiling the whole package the
+> > attacker have consolidated.
+> > There may be other way to impose penalties.
+> > For example, all locked TXO may be required to be spendable by any
+> > key that controls any TXO in the 'bond TXO package'. I think this
+> > should be possible with taproot - you will have to publish a taproot
+> > trees for your locked TXOs (say, N of them), and the tree for each TXO
+> > will have N leaves, each leaf will specify a condition "spendable by
+> > the key N". This way, if I give you my TXO to include it in a bond by
+> > locking it, you also need to make your other TXOs in a bond spendable
+> > by me.
+> > For both scenarios to work for the attacker, there's need to be an
+> > off-chain contractual relationship between the parties. Otherwise the
+> > entity that rents out the TXOs can spoil or just confiscate the bond
+> > of the entity that rented them, without reprecussions.
+>
+> bitcoin-dev mailing list
+> bitcoin-dev@lists.linuxfoundation.org
+> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev
+
+
+