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Cc: Bitcoin Dev <bitcoin-development@lists.sourceforge.net>
Subject: Re: [Bitcoin-development] BIP for Proof of Payment
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2015-06-16 7:26 GMT+02:00 Tom Harding <tomh@thinlink.com>:
>
> Kalle goes to some trouble to describe how merchants need to ensure that
> they only accept a PoP provided as a response to their challenge.
>

Do you mean that it will be hard to explain to merchants that they
must check the nonce in the PoP so that it matches the nonce in the
pop request? I think not, this is a commonly used pattern that anyone
should be able to grasp. Anyway, merchants will probably use a library
(though yet non-existing) for PoP, that will hide the gory details. I
also think that payment providers may want to add PoP to their
offering to customers (merchants).

Regards,
/Kalle

>
>
> On 6/15/2015 3:00 AM, Pieter Wuille wrote:
>
> I did misunderstand that. That changes things significantly.
>
> However, having paid is not the same as having had access to the input
> coins. What about shared wallets or coinjoin?
>
> Also, if I understand correctly, there is no commitment to anything you'r=
e
> trying to say about the sender? So once I obtain a proof-of-payment from =
you
> about something you paid, I can go claim that it's mine?
>
> Why does anyone care who paid? This is like walking into a coffeshop,
> noticing I don't have money with me, let me friend pay for me, and then h=
ave
> the shop insist that I can't drink it because I'm not the buyer.
>
> Track payments, don't try to assign identities to payers.
>
> On Jun 15, 2015 11:35 AM, "Kalle Rosenbaum" <kalle@rosenbaum.se> wrote:
>>
>> Hi Pieter!
>>
>> It is intended to be a proof that you *have paid* for something. Not
>> that you have the intent to pay for something. You cannot use PoP
>> without a transaction to prove.
>>
>> So, yes, it's just a proof of access to certain coins that you no longer
>> have.
>>
>> Maybe I don't understand you correctly?
>>
>> /Kalle
>>
>> 2015-06-15 11:27 GMT+02:00 Pieter Wuille <pieter.wuille@gmail.com>:
>> > Now that you have removed the outputs, I don't think it's even a inten=
t
>> > of
>> > payment, but just a proof of access to certain coins.
>> >
>> > On Jun 15, 2015 11:24 AM, "Kalle Rosenbaum" <kalle@rosenbaum.se> wrote=
:
>> >>
>> >> Hi all!
>> >>
>> >> I have made the discussed changes and updated my implementation
>> >> (https://github.com/kallerosenbaum/poppoc) accordingly. These are the
>> >> changes:
>> >>
>> >> * There is now only one output, the "pop output", of value 0.
>> >> * The sequence number of all inputs of the PoP must be set to 0. I
>> >> chose to set it to 0 for all inputs for simplicity.
>> >> * The lock_time of the PoP must be set to 499999999 (max block height
>> >> lock
>> >> time).
>> >>
>> >> The comments so far has been mainly positive or neutral. Are there an=
y
>> >> major objections against any of the two proposals? If not, I will ask
>> >> Gregory Maxwell to assign them BIP numbers.
>> >>
>> >> The two BIP proposals can be found at
>> >> https://github.com/kallerosenbaum/poppoc/wiki/Proof-of-Payment-BIP an=
d
>> >> https://github.com/kallerosenbaum/poppoc/wiki/btcpop-scheme-BIP. The
>> >> source
>> >> for the Proof of Payment BIP proposal is also in-lined below.
>> >>
>> >> A number of alternative names have been proposed:
>> >>
>> >> * Proof of Potential
>> >> * Proof of Control
>> >> * Proof of Signature
>> >> * Signatory Proof
>> >> * Popo: Proof of payment origin
>> >> * Pots: Proof of transaction signer
>> >> * proof of transaction intent
>> >> * Declaration of intent
>> >> * Asset-access-and-action-affirmation, AAaAA, or A5
>> >> * VeriBit
>> >> * CertiBTC
>> >> * VBit
>> >> * PayID
>> >>
>> >> Given this list, I still think "Proof of Payment" is the most
>> >> descriptive
>> >> to non-technical people.
>> >>
>> >> Regards,
>> >> Kalle
>> >>
>> >>
>> >> #################################################
>> >> <pre>
>> >>   BIP: <BIP number>
>> >>   Title: Proof of Payment
>> >>   Author: Kalle Rosenbaum <kalle@rosenbaum.se>
>> >>   Status: Draft
>> >>   Type: Standards Track
>> >>   Created: <date created on, in ISO 8601 (yyyy-mm-dd) format>
>> >> </pre>
>> >>
>> >> =3D=3D Abstract =3D=3D
>> >>
>> >> This BIP describes how a wallet can prove to a server that it has the
>> >> ability to sign a certain transaction.
>> >>
>> >> =3D=3D Motivation =3D=3D
>> >>
>> >> There are several scenarios in which it would be useful to prove that
>> >> you
>> >> have paid for something. For example:
>> >>
>> >> * A pre-paid hotel room where your PoP functions as a key to the door=
.
>> >> * An online video rental service where you pay for a video and watch =
it
>> >> on
>> >> any device.
>> >> * An ad-sign where you pay in advance for e.g. 2 weeks exclusivity.
>> >> During
>> >> this period you can upload new content to the sign whenever you like
>> >> using
>> >> PoP.
>> >> * Log in to a pay site using a PoP.
>> >> * A parking lot you pay for monthly and the car authenticates itself
>> >> using
>> >> PoP.
>> >> * A lottery where all participants pay to the same address, and the
>> >> winner
>> >> is selected among the transactions to that address. You exchange the
>> >> prize
>> >> for a PoP for the winning transaction.
>> >>
>> >> With Proof of Payment, these use cases can be achieved without any
>> >> personal information (user name, password, e-mail address, etc) being
>> >> involved.
>> >>
>> >> =3D=3D Rationale =3D=3D
>> >>
>> >> Desirable properties:
>> >>
>> >> # A PoP should be generated on demand.
>> >> # It should only be usable once to avoid issues due to theft.
>> >> # It should be able to create a PoP for any payment, regardless of
>> >> script
>> >> type (P2SH, P2PKH, etc.).
>> >> # It should prove that you have enough credentials to unlock all the
>> >> inputs of the proven transaction.
>> >> # It should be easy to implement by wallets and servers to ease
>> >> adoption.
>> >>
>> >> Current methods of proving a payment:
>> >>
>> >> * In BIP0070, the PaymentRequest together with the transactions
>> >> fulfilling
>> >> the request makes some sort of proof. However, it does not meet 1, 2 =
or
>> >> 4
>> >> and it obviously only meets 3 if the payment is made through BIP0070.
>> >> Also,
>> >> there's no standard way to request/provide the proof. If standardized
>> >> it
>> >> would probably meet 5.
>> >> * Signing messages, chosen by the server, with the private keys used =
to
>> >> sign the transaction. This could meet 1 and 2 but probably not 3. Thi=
s
>> >> is
>> >> not standardized either. 4 Could be met if designed so.
>> >>
>> >> If an input script type is P2SH, any satisfying script should do, jus=
t
>> >> as
>> >> if it was a payment. For M-of-N multisig scripts, that would mean tha=
t
>> >> any
>> >> set of M keys should be sufficient, not neccesarily the same set of M
>> >> keys
>> >> that signed the transaction. This is important because strictly
>> >> demanding
>> >> the same set of M keys would defeat the purpose of a multisig address=
.
>> >>
>> >> =3D=3D Specification =3D=3D
>> >>
>> >> =3D=3D=3D Data structure =3D=3D=3D
>> >>
>> >> A proof of payment for a transaction T, here called PoP(T), is used t=
o
>> >> prove that one has ownership of the credentials needed to unlock all
>> >> the
>> >> inputs of T. It has the exact same structure as a bitcoin transaction
>> >> with
>> >> the same inputs as T and in the same order as in T, but with each
>> >> sequence
>> >> number set to 0. There is exactly one output, here called the pop
>> >> output,
>> >> with value 0. The pop output must have the following format:
>> >>
>> >>  OP_RETURN <version> <txid> <nonce>
>> >>
>> >> {|
>> >> ! Field        !! Size [B] !! Description
>> >> |-
>> >> | &lt;version> || 2        || Version, little endian, currently 0x01
>> >> 0x00
>> >> |-
>> >> | &lt;txid>    || 32       || The transaction to prove
>> >> |-
>> >> | &lt;nonce>   || 6        || Random data
>> >> |}
>> >>
>> >> The lock_time of the PoP must be set to 499999999 to prevent the PoP
>> >> from
>> >> being included in a block, should it appear on the bitcoin p2p networ=
k.
>> >> This
>> >> is also the reason for setting the sequence numbers to 0, since
>> >> sequence
>> >> number of ffffffff would make lock_time ineffective. This specificati=
on
>> >> demands that all input sequence numbers are 0, not just one of them,
>> >> which
>> >> would be sufficient to make lock_time effective. This is for simplici=
ty
>> >> reasons.
>> >>
>> >> An illustration of the PoP data structure and its original payment is
>> >> shown below.
>> >>
>> >> <pre>
>> >>   T
>> >>  +------------------------------------------------+
>> >>  |inputs                | outputs                 |
>> >>  |       Value,Sequence | Value,Script            |
>> >>  +------------------------------------------------+
>> >>  |input0 1,ffffffff     | 0,pay to A              |
>> >>  |input1 3,ffffffff     | 2,OP_RETURN <some data> |
>> >>  |input2 4,ffffffff     | 1,pay to B              |
>> >>  |                      | 4,pay to C              |
>> >>  +------------------------------------------------+
>> >>
>> >>   PoP(T)
>> >>  +-------------------------------------------------------------+
>> >>  | inputs               | outputs                              |
>> >>  |       Value,Sequence | Value,Script                         |
>> >>  +-------------------------------------------------------------+
>> >>  |input0 1,00000000     | 0,OP_RETURN <version> <txid> <nonce> |
>> >>  |input1 3,00000000     |                                      |
>> >>  |input2 4,00000000     |                                      |
>> >>  +-------------------------------------------------------------+
>> >>  | lock_time=3D499999999                                         |
>> >>  +-------------------------------------------------------------+
>> >> </pre>
>> >>
>> >> The PoP is signed using the same signing process that is used for
>> >> bitcoin
>> >> transactions.
>> >>
>> >> The purpose of the nonce is to make it harder to use a stolen PoP; On=
ce
>> >> the PoP has reached the server, that PoP is useless since the server
>> >> will
>> >> generate a new nonce for every PoP request.
>> >>
>> >> =3D=3D=3D Process =3D=3D=3D
>> >>
>> >> # A proof of payment request is sent from the server to the wallet. T=
he
>> >> PoP request contains:
>> >> ## a random nonce
>> >> ## a destination where to send the PoP, for example a https URL
>> >> ## data hinting the wallet which transaction to create a proof for. F=
or
>> >> example:
>> >> ##* txid, if known by the server
>> >> ##* PaymentRequest.PaymentDetails.merchant_data (in case of a BIP0070
>> >> payment)
>> >> ##* amount, label, message or other information from a BIP0021 URI
>> >> # The wallet identifies a transaction T, if possible. Otherwise it as=
ks
>> >> the user to select among the ones that match the hints in 1.iii.
>> >> # The wallet creates an unsigned PoP (UPoP) for T, and asks the user =
to
>> >> sign it.
>> >> # The user confirms
>> >> # The UPoP(T) is signed by the wallet, creating PoP(T).
>> >> # The PoP is sent to the destination in 1.ii.
>> >> # The server receiving the PoP validates it and responds with =E2=80=
=9Cvalid=E2=80=9D
>> >> or
>> >> =E2=80=9Cinvalid=E2=80=9D.
>> >> # The wallet displays the response in some way to the user.
>> >>
>> >> '''Remarks:'''
>> >>
>> >> * The method of transferring the PoP request at step 1 is not specifi=
ed
>> >> here. Instead that is specified in separate specifications. See [btcp=
op
>> >> scheme BIP](btcpop scheme BIP).
>> >> * The nonce must be randomly generated by the server for every new Po=
P
>> >> request.
>> >>
>> >> =3D=3D=3D Validating a PoP =3D=3D=3D
>> >>
>> >> The server needs to validate the PoP and reply with "valid" or
>> >> "invalid".
>> >> That process is outlined below. If any step fails, the validation is
>> >> aborted
>> >> and "invalid" is returned:
>> >>
>> >> # Check the format of the PoP. It must pass normal transaction checks=
,
>> >> except that the inputs may already be spent.
>> >> # Check that lock_time is 499999999.
>> >> # Check that there is exactly one output. This output must have value=
 0
>> >> and conform to the OP_RETURN output format outlined above.
>> >> # Check that the nonce is the same as the one requested.
>> >> # Check that the inputs of the PoP are exactly the same as in
>> >> transaction
>> >> T, except that the sequence numbers must all be 0. The ordering of th=
e
>> >> inputs must also be the same as in T.
>> >> # Run the scripts of all the inputs. All scipts must return true.
>> >> # Check that the txid in the PoP output is the transaction you actual=
ly
>> >> want proof for. If you don=E2=80=99t know exactly what transaction yo=
u want
>> >> proof
>> >> for, check that the transaction actually pays for the product/service
>> >> you
>> >> deliver.
>> >> # Return "valid".
>> >>
>> >> =3D=3D Security considerations =3D=3D
>> >>
>> >> * Someone can intercept the PoP-request and change any parameter in i=
t.
>> >> These can be mitigated by using secure connections. For example:
>> >> ** Pop destination - Stealing your PoP.
>> >> ** label - Trick you to sign an unintended pop or set a label that yo=
ur
>> >> wallet doesn't have any record for, resulting in a broken service.
>> >> Always
>> >> check the PoP before signing.
>> >> ** nonce - Your pop will not validate on server.
>> >> * Someone can steal a PoP, for example by tampering with the PoP
>> >> request,
>> >> and try to use the service hoping to get a matching nonce. Probabilit=
y
>> >> per
>> >> try: 1/(2^48). The server should have a mechanism for detecting a bru=
te
>> >> force attack of this kind, or at least slow down the process by
>> >> delaying the
>> >> PoP request by some 100 ms or so.
>> >> * Even if a wallet has no funds it might still be valuable as a
>> >> generator
>> >> for PoPs. This makes it important to keep the security of the wallet
>> >> after
>> >> it has been emptied.
>> >> * Transaction malleability may cause the server to have another
>> >> transaction id for a payment than the client's wallet. In that case t=
he
>> >> wallet will not be able to prove the transaction to the server. Walle=
ts
>> >> should not rely on the transaction id of the outgoing transaction.
>> >> Instead
>> >> it should listen for the transaction on the network and put that in i=
ts
>> >> list
>> >> of transactions.
>> >>
>> >> =3D=3D Reference implementation =3D=3D
>> >>
>> >> [https://github.com/kallerosenbaum/poppoc poppoc on GitHub]
>> >>
>> >> [https://github.com/kallerosenbaum/wallet Mycelium fork on GitHub]
>> >>
>> >> =3D=3D References =3D=3D
>> >>
>> >> [https://github.com/bitcoin/bips/blob/master/bip-0021.mediawiki
>> >> BIP0021]:
>> >> URI Scheme
>> >>
>> >> [https://github.com/bitcoin/bips/blob/master/bip-0070.mediawiki
>> >> BIP0070]:
>> >> Payment Protocol
>> >>
>> >> [[btcpop scheme BIP]]
>> >>
>> >> #########################################################
>> >>
>> >> 2015-06-06 23:25 GMT+02:00 Kalle Rosenbaum <kalle@rosenbaum.se>:
>> >> > Thank you all for the feedback.
>> >> >
>> >> > I will change the data structure as follows:
>> >> >
>> >> > * There will be only one output, the "pop output", and no outputs
>> >> > from
>> >> > T will be copied to the PoP.
>> >> > * The pop output will have value 0.
>> >> > * The sequence number of all inputs of the PoP will be set to 0. I
>> >> > chose to set it to 0 for all inputs for simplicity.
>> >> > * The lock_time of the PoP is always set to 499999999.
>> >> >
>> >> > Any comments on this?
>> >> >
>> >> > /Kalle
>> >> >
>> >> > 2015-06-06 19:00 GMT+02:00 Kalle Rosenbaum <kalle@rosenbaum.se>:
>> >> >> 2015-06-06 18:10 GMT+02:00 Tom Harding <tomh@thinlink.com>:
>> >> >>> On Jun 6, 2015 8:05 AM, "Kalle Rosenbaum" <kalle@rosenbaum.se>
>> >> >>> wrote:
>> >> >>>
>> >> >>>> I'm open to changes here.
>> >> >>>
>> >> >>> I suggest:
>> >> >>>
>> >> >>> - Don't include any real outputs.   They are redundant because th=
e
>> >> >>> txid is
>> >> >>> already referenced.
>> >> >>
>> >> >> with the nLocktime solution, the copied outputs are not needed.
>> >> >>
>> >> >>>
>> >> >>> - Start the proof script, which should be invalid, with a magic
>> >> >>> constant and
>> >> >>> include space for future expansion.  This makes PoP's easy to
>> >> >>> identify
>> >> >>> and
>> >> >>> extend.
>> >> >>
>> >> >> I did remore the constant (a "PoP" literal ascii encoded string)
>> >> >> because it didn't add much. The recipient will expect a pop, so it
>> >> >> will simply treat it as one. I did add a 2 byte version field to
>> >> >> make
>> >> >> it extendable.
>> >> >>
>> >> >>>
>> >> >>> - "Proof of Potential"
>> >> >>
>> >> >> Noted :-)
>> >> >>
>> >> >> Thank you
>> >> >> /Kalle
>> >>
>> >>
>> >>
>> >> ---------------------------------------------------------------------=
---------
>> >>
>> >> _______________________________________________
>> >> Bitcoin-development mailing list
>> >> Bitcoin-development@lists.sourceforge.net
>> >> https://lists.sourceforge.net/lists/listinfo/bitcoin-development
>> >>
>> >
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