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From: Bastien TEINTURIER <bastien@acinq.fr>
Date: Wed, 22 Sep 2021 09:10:38 +0200
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To: Gloria Zhao <gloriajzhao@gmail.com>
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Cc: Bitcoin Protocol Discussion <bitcoin-dev@lists.linuxfoundation.org>
Subject: Re: [bitcoin-dev] Proposal: Package Mempool Accept and Package RBF
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Great, thanks for this clarification!

Can you confirm that this won't be an issue either with your
example 2C (in your first set of diagrams)? If I understand it
correctly it shouldn't, but I'd rather be 100% sure.

A package A + C will be able to replace A' + B regardless of
the weight of A' + B?

Thanks,
Bastien

Le mar. 21 sept. 2021 =C3=A0 18:42, Gloria Zhao <gloriajzhao@gmail.com> a =
=C3=A9crit :

> Hi Bastien,
>
> Excellent diagram :D
>
> > Here the issue is that a revoked commitment tx A' is pinned in other
> > mempools, with a long chain of descendants (or descendants that reach
> > the maximum replaceable size).
> > We would really like A + C to be able to replace this pinned A'.
> > We can't submit individually because A on its own won't replace A'...
>
> Right, this is a key motivation for having Package RBF. In this case, A+C
> can replace A' + B1...B24.
>
> Due to the descendant limit (each node operator can increase it on their
> own node, but the default is 25), A' should have no more than 25
> descendants, even including CPFP carve out. As long as A only conflicts
> with A', it won't be trying to replace more than 100 transactions. The
> proposed package RBF will allow C to pay for A's conflicts, since their
> package feerate is used in the fee comparisons. A is not a descendant of
> A', so the existence of B1...B24 does not prevent the replacement.
>
> Best,
> Gloria
>
> On Tue, Sep 21, 2021 at 4:18 PM Bastien TEINTURIER <bastien@acinq.fr>
> wrote:
>
>> Hi Gloria,
>>
>> > I believe this attack is mitigated as long as we attempt to submit
>> transactions individually
>>
>> Unfortunately not, as there exists a pinning scenario in LN where a
>> different commit tx is pinned, but you actually can't know which one.
>>
>> Since I really like your diagrams, I made one as well to illustrate:
>>
>> https://user-images.githubusercontent.com/31281497/134198114-5e9c6857-e8=
fc-405a-be57-18181d5e54cb.jpg
>>
>> Here the issue is that a revoked commitment tx A' is pinned in other
>> mempools, with a long chain of descendants (or descendants that reach
>> the maximum replaceable size).
>>
>> We would really like A + C to be able to replace this pinned A'.
>> We can't submit individually because A on its own won't replace A'...
>>
>> > I would note that this proposal doesn't accommodate something like
>> diagram B, where C is getting CPFP carve out and wants to bring a +1
>>
>> No worries, that case shouldn't be a concern.
>> I believe any L2 protocol can always ensure it confirms such tx trees
>> "one depth after the other" without impacting funds safety, so it
>> only needs to ensure A + C can get into mempools.
>>
>> Thanks,
>> Bastien
>>
>> Le mar. 21 sept. 2021 =C3=A0 13:18, Gloria Zhao <gloriajzhao@gmail.com> =
a
>> =C3=A9crit :
>>
>>> Hi Bastien,
>>>
>>> Thank you for your feedback!
>>>
>>> > In your example we have a parent transaction A already in the mempool
>>> > and an unrelated child B. We submit a package C + D where C spends
>>> > another of A's inputs. You're highlighting that this package may be
>>> > rejected because of the unrelated transaction(s) B.
>>>
>>> > The way I see this, an attacker can abuse this rule to ensure
>>> > transaction A stays pinned in the mempool without confirming by
>>> > broadcasting a set of child transactions that reach these limits
>>> > and pay low fees (where A would be a commit tx in LN).
>>>
>>> I believe you are describing a pinning attack in which your adversarial
>>> counterparty attempts to monopolize the mempool descendant limit of the
>>> shared  transaction A in order to prevent you from submitting a fee-bum=
ping
>>> child C; I've tried to illustrate this as diagram A here:
>>> https://user-images.githubusercontent.com/25183001/134159860-068080d0-b=
bb6-4356-ae74-00df00644c74.png
>>> (please let me know if I'm misunderstanding).
>>>
>>> I believe this attack is mitigated as long as we attempt to submit
>>> transactions individually (and thus take advantage of CPFP carve out)
>>> before attempting package validation. So, in scenario A2, even if the
>>> mempool receives a package with A+C, it would deduplicate A, submit C a=
s an
>>> individual transaction, and allow it due to the CPFP carve out exemptio=
n. A
>>> more general goal is: if a transaction would propagate successfully on =
its
>>> own now, it should still propagate regardless of whether it is included=
 in
>>> a package. The best way to ensure this, as far as I can tell, is to alw=
ays
>>> try to submit them individually first.
>>>
>>> I would note that this proposal doesn't accommodate something like
>>> diagram B, where C is getting CPFP carve out and wants to bring a +1 (e=
.g.
>>> C has very low fees and is bumped by D). I don't think this is a use ca=
se
>>> since C should be the one fee-bumping A, but since we're talking about
>>> limitations around the CPFP carve out, this is it.
>>>
>>> Let me know if this addresses your concerns?
>>>
>>> Thanks,
>>> Gloria
>>>
>>> On Mon, Sep 20, 2021 at 10:19 AM Bastien TEINTURIER <bastien@acinq.fr>
>>> wrote:
>>>
>>>> Hi Gloria,
>>>>
>>>> Thanks for this detailed post!
>>>>
>>>> The illustrations you provided are very useful for this kind of graph
>>>> topology problems.
>>>>
>>>> The rules you lay out for package RBF look good to me at first glance
>>>> as there are some subtle improvements compared to BIP 125.
>>>>
>>>> > 1. A package cannot exceed `MAX_PACKAGE_COUNT=3D25` count and
>>>> > `MAX_PACKAGE_SIZE=3D101KvB` total size [8]
>>>>
>>>> I have a question regarding this rule, as your example 2C could be
>>>> concerning for LN (unless I didn't understand it correctly).
>>>>
>>>> This also touches on the package RBF rule 5 ("The package cannot
>>>> replace more than 100 mempool transactions.")
>>>>
>>>> In your example we have a parent transaction A already in the mempool
>>>> and an unrelated child B. We submit a package C + D where C spends
>>>> another of A's inputs. You're highlighting that this package may be
>>>> rejected because of the unrelated transaction(s) B.
>>>>
>>>> The way I see this, an attacker can abuse this rule to ensure
>>>> transaction A stays pinned in the mempool without confirming by
>>>> broadcasting a set of child transactions that reach these limits
>>>> and pay low fees (where A would be a commit tx in LN).
>>>>
>>>> We had to create the CPFP carve-out rule explicitly to work around
>>>> this limitation, and I think it would be necessary for package RBF
>>>> as well, because in such cases we do want to be able to submit a
>>>> package A + C where C pays high fees to speed up A's confirmation,
>>>> regardless of unrelated unconfirmed children of A...
>>>>
>>>> We could submit only C to benefit from the existing CPFP carve-out
>>>> rule, but that wouldn't work if our local mempool doesn't have A yet,
>>>> but other remote mempools do.
>>>>
>>>> Is my concern justified? Is this something that we should dig into a
>>>> bit deeper?
>>>>
>>>> Thanks,
>>>> Bastien
>>>>
>>>> Le jeu. 16 sept. 2021 =C3=A0 09:55, Gloria Zhao via bitcoin-dev <
>>>> bitcoin-dev@lists.linuxfoundation.org> a =C3=A9crit :
>>>>
>>>>> Hi there,
>>>>>
>>>>> I'm writing to propose a set of mempool policy changes to enable
>>>>> package
>>>>> validation (in preparation for package relay) in Bitcoin Core. These
>>>>> would not
>>>>> be consensus or P2P protocol changes. However, since mempool policy
>>>>> significantly affects transaction propagation, I believe this is
>>>>> relevant for
>>>>> the mailing list.
>>>>>
>>>>> My proposal enables packages consisting of multiple parents and 1
>>>>> child. If you
>>>>> develop software that relies on specific transaction relay assumption=
s
>>>>> and/or
>>>>> are interested in using package relay in the future, I'm very
>>>>> interested to hear
>>>>> your feedback on the utility or restrictiveness of these package
>>>>> policies for
>>>>> your use cases.
>>>>>
>>>>> A draft implementation of this proposal can be found in [Bitcoin Core
>>>>> PR#22290][1].
>>>>>
>>>>> An illustrated version of this post can be found at
>>>>> https://gist.github.com/glozow/dc4e9d5c5b14ade7cdfac40f43adb18a.
>>>>> I have also linked the images below.
>>>>>
>>>>> ## Background
>>>>>
>>>>> Feel free to skip this section if you are already familiar with
>>>>> mempool policy
>>>>> and package relay terminology.
>>>>>
>>>>> ### Terminology Clarifications
>>>>>
>>>>> * Package =3D an ordered list of related transactions, representable =
by
>>>>> a Directed
>>>>>   Acyclic Graph.
>>>>> * Package Feerate =3D the total modified fees divided by the total
>>>>> virtual size of
>>>>>   all transactions in the package.
>>>>>     - Modified fees =3D a transaction's base fees + fee delta applied=
 by
>>>>> the user
>>>>>       with `prioritisetransaction`. As such, we expect this to vary
>>>>> across
>>>>> mempools.
>>>>>     - Virtual Size =3D the maximum of virtual sizes calculated using
>>>>> [BIP141
>>>>>       virtual size][2] and sigop weight. [Implemented here in Bitcoin
>>>>> Core][3].
>>>>>     - Note that feerate is not necessarily based on the base fees and
>>>>> serialized
>>>>>       size.
>>>>>
>>>>> * Fee-Bumping =3D user/wallet actions that take advantage of miner
>>>>> incentives to
>>>>>   boost a transaction's candidacy for inclusion in a block, including
>>>>> Child Pays
>>>>> for Parent (CPFP) and [BIP125][12] Replace-by-Fee (RBF). Our intentio=
n
>>>>> in
>>>>> mempool policy is to recognize when the new transaction is more
>>>>> economical to
>>>>> mine than the original one(s) but not open DoS vectors, so there are
>>>>> some
>>>>> limitations.
>>>>>
>>>>> ### Policy
>>>>>
>>>>> The purpose of the mempool is to store the best (to be most
>>>>> incentive-compatible
>>>>> with miners, highest feerate) candidates for inclusion in a block.
>>>>> Miners use
>>>>> the mempool to build block templates. The mempool is also useful as a
>>>>> cache for
>>>>> boosting block relay and validation performance, aiding transaction
>>>>> relay, and
>>>>> generating feerate estimations.
>>>>>
>>>>> Ideally, all consensus-valid transactions paying reasonable fees
>>>>> should make it
>>>>> to miners through normal transaction relay, without any special
>>>>> connectivity or
>>>>> relationships with miners. On the other hand, nodes do not have
>>>>> unlimited
>>>>> resources, and a P2P network designed to let any honest node broadcas=
t
>>>>> their
>>>>> transactions also exposes the transaction validation engine to DoS
>>>>> attacks from
>>>>> malicious peers.
>>>>>
>>>>> As such, for unconfirmed transactions we are considering for our
>>>>> mempool, we
>>>>> apply a set of validation rules in addition to consensus, primarily t=
o
>>>>> protect
>>>>> us from resource exhaustion and aid our efforts to keep the highest f=
ee
>>>>> transactions. We call this mempool _policy_: a set of (configurable,
>>>>> node-specific) rules that transactions must abide by in order to be
>>>>> accepted
>>>>> into our mempool. Transaction "Standardness" rules and mempool
>>>>> restrictions such
>>>>> as "too-long-mempool-chain" are both examples of policy.
>>>>>
>>>>> ### Package Relay and Package Mempool Accept
>>>>>
>>>>> In transaction relay, we currently consider transactions one at a tim=
e
>>>>> for
>>>>> submission to the mempool. This creates a limitation in the node's
>>>>> ability to
>>>>> determine which transactions have the highest feerates, since we
>>>>> cannot take
>>>>> into account descendants (i.e. cannot use CPFP) until all the
>>>>> transactions are
>>>>> in the mempool. Similarly, we cannot use a transaction's descendants
>>>>> when
>>>>> considering it for RBF. When an individual transaction does not meet
>>>>> the mempool
>>>>> minimum feerate and the user isn't able to create a replacement
>>>>> transaction
>>>>> directly, it will not be accepted by mempools.
>>>>>
>>>>> This limitation presents a security issue for applications and users
>>>>> relying on
>>>>> time-sensitive transactions. For example, Lightning and other
>>>>> protocols create
>>>>> UTXOs with multiple spending paths, where one counterparty's spending
>>>>> path opens
>>>>> up after a timelock, and users are protected from cheating scenarios
>>>>> as long as
>>>>> they redeem on-chain in time. A key security assumption is that all
>>>>> parties'
>>>>> transactions will propagate and confirm in a timely manner. This
>>>>> assumption can
>>>>> be broken if fee-bumping does not work as intended.
>>>>>
>>>>> The end goal for Package Relay is to consider multiple transactions a=
t
>>>>> the same
>>>>> time, e.g. a transaction with its high-fee child. This may help us
>>>>> better
>>>>> determine whether transactions should be accepted to our mempool,
>>>>> especially if
>>>>> they don't meet fee requirements individually or are better RBF
>>>>> candidates as a
>>>>> package. A combination of changes to mempool validation logic, policy=
,
>>>>> and
>>>>> transaction relay allows us to better propagate the transactions with
>>>>> the
>>>>> highest package feerates to miners, and makes fee-bumping tools more
>>>>> powerful
>>>>> for users.
>>>>>
>>>>> The "relay" part of Package Relay suggests P2P messaging changes, but
>>>>> a large
>>>>> part of the changes are in the mempool's package validation logic. We
>>>>> call this
>>>>> *Package Mempool Accept*.
>>>>>
>>>>> ### Previous Work
>>>>>
>>>>> * Given that mempool validation is DoS-sensitive and complex, it woul=
d
>>>>> be
>>>>>   dangerous to haphazardly tack on package validation logic. Many
>>>>> efforts have
>>>>> been made to make mempool validation less opaque (see [#16400][4],
>>>>> [#21062][5],
>>>>> [#22675][6], [#22796][7]).
>>>>> * [#20833][8] Added basic capabilities for package validation, test
>>>>> accepts only
>>>>>   (no submission to mempool).
>>>>> * [#21800][9] Implemented package ancestor/descendant limit checks fo=
r
>>>>> arbitrary
>>>>>   packages. Still test accepts only.
>>>>> * Previous package relay proposals (see [#16401][10], [#19621][11]).
>>>>>
>>>>> ### Existing Package Rules
>>>>>
>>>>> These are in master as introduced in [#20833][8] and [#21800][9]. I'l=
l
>>>>> consider
>>>>> them as "given" in the rest of this document, though they can be
>>>>> changed, since
>>>>> package validation is test-accept only right now.
>>>>>
>>>>> 1. A package cannot exceed `MAX_PACKAGE_COUNT=3D25` count and
>>>>> `MAX_PACKAGE_SIZE=3D101KvB` total size [8]
>>>>>
>>>>>    *Rationale*: This is already enforced as mempool
>>>>> ancestor/descendant limits.
>>>>> Presumably, transactions in a package are all related, so exceeding
>>>>> this limit
>>>>> would mean that the package can either be split up or it wouldn't pas=
s
>>>>> this
>>>>> mempool policy.
>>>>>
>>>>> 2. Packages must be topologically sorted: if any dependencies exist
>>>>> between
>>>>> transactions, parents must appear somewhere before children. [8]
>>>>>
>>>>> 3. A package cannot have conflicting transactions, i.e. none of them
>>>>> can spend
>>>>> the same inputs. This also means there cannot be duplicate
>>>>> transactions. [8]
>>>>>
>>>>> 4. When packages are evaluated against ancestor/descendant limits in =
a
>>>>> test
>>>>> accept, the union of all of their descendants and ancestors is
>>>>> considered. This
>>>>> is essentially a "worst case" heuristic where every transaction in th=
e
>>>>> package
>>>>> is treated as each other's ancestor and descendant. [8]
>>>>> Packages for which ancestor/descendant limits are accurately captured
>>>>> by this
>>>>> heuristic: [19]
>>>>>
>>>>> There are also limitations such as the fact that CPFP carve out is no=
t
>>>>> applied
>>>>> to package transactions. #20833 also disables RBF in package
>>>>> validation; this
>>>>> proposal overrides that to allow packages to use RBF.
>>>>>
>>>>> ## Proposed Changes
>>>>>
>>>>> The next step in the Package Mempool Accept project is to implement
>>>>> submission
>>>>> to mempool, initially through RPC only. This allows us to test the
>>>>> submission
>>>>> logic before exposing it on P2P.
>>>>>
>>>>> ### Summary
>>>>>
>>>>> - Packages may contain already-in-mempool transactions.
>>>>> - Packages are 2 generations, Multi-Parent-1-Child.
>>>>> - Fee-related checks use the package feerate. This means that wallets
>>>>> can
>>>>> create a package that utilizes CPFP.
>>>>> - Parents are allowed to RBF mempool transactions with a set of rules
>>>>> similar
>>>>>   to BIP125. This enables a combination of CPFP and RBF, where a
>>>>> transaction's descendant fees pay for replacing mempool conflicts.
>>>>>
>>>>> There is a draft implementation in [#22290][1]. It is WIP, but
>>>>> feedback is
>>>>> always welcome.
>>>>>
>>>>> ### Details
>>>>>
>>>>> #### Packages May Contain Already-in-Mempool Transactions
>>>>>
>>>>> A package may contain transactions that are already in the mempool. W=
e
>>>>> remove
>>>>> ("deduplicate") those transactions from the package for the purposes
>>>>> of package
>>>>> mempool acceptance. If a package is empty after deduplication, we do
>>>>> nothing.
>>>>>
>>>>> *Rationale*: Mempools vary across the network. It's possible for a
>>>>> parent to be
>>>>> accepted to the mempool of a peer on its own due to differences in
>>>>> policy and
>>>>> fee market fluctuations. We should not reject or penalize the entire
>>>>> package for
>>>>> an individual transaction as that could be a censorship vector.
>>>>>
>>>>> #### Packages Are Multi-Parent-1-Child
>>>>>
>>>>> Only packages of a specific topology are permitted. Namely, a package
>>>>> is exactly
>>>>> 1 child with all of its unconfirmed parents. After deduplication, the
>>>>> package
>>>>> may be exactly the same, empty, 1 child, 1 child with just some of it=
s
>>>>> unconfirmed parents, etc. Note that it's possible for the parents to
>>>>> be indirect
>>>>> descendants/ancestors of one another, or for parent and child to shar=
e
>>>>> a parent,
>>>>> so we cannot make any other topology assumptions.
>>>>>
>>>>> *Rationale*: This allows for fee-bumping by CPFP. Allowing multiple
>>>>> parents
>>>>> makes it possible to fee-bump a batch of transactions. Restricting
>>>>> packages to a
>>>>> defined topology is also easier to reason about and simplifies the
>>>>> validation
>>>>> logic greatly. Multi-parent-1-child allows us to think of the package
>>>>> as one big
>>>>> transaction, where:
>>>>>
>>>>> - Inputs =3D all the inputs of parents + inputs of the child that com=
e
>>>>> from
>>>>>   confirmed UTXOs
>>>>> - Outputs =3D all the outputs of the child + all outputs of the paren=
ts
>>>>> that
>>>>>   aren't spent by other transactions in the package
>>>>>
>>>>> Examples of packages that follow this rule (variations of example A
>>>>> show some
>>>>> possibilities after deduplication): ![image][15]
>>>>>
>>>>> #### Fee-Related Checks Use Package Feerate
>>>>>
>>>>> Package Feerate =3D the total modified fees divided by the total virt=
ual
>>>>> size of
>>>>> all transactions in the package.
>>>>>
>>>>> To meet the two feerate requirements of a mempool, i.e., the
>>>>> pre-configured
>>>>> minimum relay feerate (`minRelayTxFee`) and dynamic mempool minimum
>>>>> feerate, the
>>>>> total package feerate is used instead of the individual feerate. The
>>>>> individual
>>>>> transactions are allowed to be below feerate requirements if the
>>>>> package meets
>>>>> the feerate requirements. For example, the parent(s) in the package
>>>>> can have 0
>>>>> fees but be paid for by the child.
>>>>>
>>>>> *Rationale*: This can be thought of as "CPFP within a package,"
>>>>> solving the
>>>>> issue of a parent not meeting minimum fees on its own. This allows L2
>>>>> applications to adjust their fees at broadcast time instead of
>>>>> overshooting or
>>>>> risking getting stuck/pinned.
>>>>>
>>>>> We use the package feerate of the package *after deduplication*.
>>>>>
>>>>> *Rationale*:  It would be incorrect to use the fees of transactions
>>>>> that are
>>>>> already in the mempool, as we do not want a transaction's fees to be
>>>>> double-counted for both its individual RBF and package RBF.
>>>>>
>>>>> Examples F and G [14] show the same package, but P1 is submitted
>>>>> individually before
>>>>> the package in example G. In example F, we can see that the 300vB
>>>>> package pays
>>>>> an additional 200sat in fees, which is not enough to pay for its own
>>>>> bandwidth
>>>>> (BIP125#4). In example G, we can see that P1 pays enough to replace
>>>>> M1, but
>>>>> using P1's fees again during package submission would make it look
>>>>> like a 300sat
>>>>> increase for a 200vB package. Even including its fees and size would
>>>>> not be
>>>>> sufficient in this example, since the 300sat looks like enough for th=
e
>>>>> 300vB
>>>>> package. The calculcation after deduplication is 100sat increase for =
a
>>>>> package
>>>>> of size 200vB, which correctly fails BIP125#4. Assume all transaction=
s
>>>>> have a
>>>>> size of 100vB.
>>>>>
>>>>> #### Package RBF
>>>>>
>>>>> If a package meets feerate requirements as a package, the parents in
>>>>> the
>>>>> transaction are allowed to replace-by-fee mempool transactions. The
>>>>> child cannot
>>>>> replace mempool transactions. Multiple transactions can replace the
>>>>> same
>>>>> transaction, but in order to be valid, none of the transactions can
>>>>> try to
>>>>> replace an ancestor of another transaction in the same package (which
>>>>> would thus
>>>>> make its inputs unavailable).
>>>>>
>>>>> *Rationale*: Even if we are using package feerate, a package will not
>>>>> propagate
>>>>> as intended if RBF still requires each individual transaction to meet
>>>>> the
>>>>> feerate requirements.
>>>>>
>>>>> We use a set of rules slightly modified from BIP125 as follows:
>>>>>
>>>>> ##### Signaling (Rule #1)
>>>>>
>>>>> All mempool transactions to be replaced must signal replaceability.
>>>>>
>>>>> *Rationale*: Package RBF signaling logic should be the same for
>>>>> package RBF and
>>>>> single transaction acceptance. This would be updated if single
>>>>> transaction
>>>>> validation moves to full RBF.
>>>>>
>>>>> ##### New Unconfirmed Inputs (Rule #2)
>>>>>
>>>>> A package may include new unconfirmed inputs, but the ancestor feerat=
e
>>>>> of the
>>>>> child must be at least as high as the ancestor feerates of every
>>>>> transaction
>>>>> being replaced. This is contrary to BIP125#2, which states "The
>>>>> replacement
>>>>> transaction may only include an unconfirmed input if that input was
>>>>> included in
>>>>> one of the original transactions. (An unconfirmed input spends an
>>>>> output from a
>>>>> currently-unconfirmed transaction.)"
>>>>>
>>>>> *Rationale*: The purpose of BIP125#2 is to ensure that the replacemen=
t
>>>>> transaction has a higher ancestor score than the original
>>>>> transaction(s) (see
>>>>> [comment][13]). Example H [16] shows how adding a new unconfirmed
>>>>> input can lower the
>>>>> ancestor score of the replacement transaction. P1 is trying to replac=
e
>>>>> M1, and
>>>>> spends an unconfirmed output of M2. P1 pays 800sat, M1 pays 600sat,
>>>>> and M2 pays
>>>>> 100sat. Assume all transactions have a size of 100vB. While, in
>>>>> isolation, P1
>>>>> looks like a better mining candidate than M1, it must be mined with
>>>>> M2, so its
>>>>> ancestor feerate is actually 4.5sat/vB.  This is lower than M1's
>>>>> ancestor
>>>>> feerate, which is 6sat/vB.
>>>>>
>>>>> In package RBF, the rule analogous to BIP125#2 would be "none of the
>>>>> transactions in the package can spend new unconfirmed inputs." Exampl=
e
>>>>> J [17] shows
>>>>> why, if any of the package transactions have ancestors, package
>>>>> feerate is no
>>>>> longer accurate. Even though M2 and M3 are not ancestors of P1 (which
>>>>> is the
>>>>> replacement transaction in an RBF), we're actually interested in the
>>>>> entire
>>>>> package. A miner should mine M1 which is 5sat/vB instead of M2, M3,
>>>>> P1, P2, and
>>>>> P3, which is only 4sat/vB. The Package RBF rule cannot be loosened to
>>>>> only allow
>>>>> the child to have new unconfirmed inputs, either, because it can stil=
l
>>>>> cause us
>>>>> to overestimate the package's ancestor score.
>>>>>
>>>>> However, enforcing a rule analogous to BIP125#2 would not only make
>>>>> Package RBF
>>>>> less useful, but would also break Package RBF for packages with
>>>>> parents already
>>>>> in the mempool: if a package parent has already been submitted, it
>>>>> would look
>>>>> like the child is spending a "new" unconfirmed input. In example K
>>>>> [18], we're
>>>>> looking to replace M1 with the entire package including P1, P2, and
>>>>> P3. We must
>>>>> consider the case where one of the parents is already in the mempool
>>>>> (in this
>>>>> case, P2), which means we must allow P3 to have new unconfirmed
>>>>> inputs. However,
>>>>> M2 lowers the ancestor score of P3 to 4.3sat/vB, so we should not
>>>>> replace M1
>>>>> with this package.
>>>>>
>>>>> Thus, the package RBF rule regarding new unconfirmed inputs is less
>>>>> strict than
>>>>> BIP125#2. However, we still achieve the same goal of requiring the
>>>>> replacement
>>>>> transactions to have a ancestor score at least as high as the origina=
l
>>>>> ones. As
>>>>> a result, the entire package is required to be a higher feerate minin=
g
>>>>> candidate
>>>>> than each of the replaced transactions.
>>>>>
>>>>> Another note: the [comment][13] above the BIP125#2 code in the
>>>>> original RBF
>>>>> implementation suggests that the rule was intended to be temporary.
>>>>>
>>>>> ##### Absolute Fee (Rule #3)
>>>>>
>>>>> The package must increase the absolute fee of the mempool, i.e. the
>>>>> total fees
>>>>> of the package must be higher than the absolute fees of the mempool
>>>>> transactions
>>>>> it replaces. Combined with the CPFP rule above, this differs from
>>>>> BIP125 Rule #3
>>>>> - an individual transaction in the package may have lower fees than t=
he
>>>>>   transaction(s) it is replacing. In fact, it may have 0 fees, and th=
e
>>>>> child
>>>>> pays for RBF.
>>>>>
>>>>> ##### Feerate (Rule #4)
>>>>>
>>>>> The package must pay for its own bandwidth; the package feerate must
>>>>> be higher
>>>>> than the replaced transactions by at least minimum relay feerate
>>>>> (`incrementalRelayFee`). Combined with the CPFP rule above, this
>>>>> differs from
>>>>> BIP125 Rule #4 - an individual transaction in the package can have a
>>>>> lower
>>>>> feerate than the transaction(s) it is replacing. In fact, it may have
>>>>> 0 fees,
>>>>> and the child pays for RBF.
>>>>>
>>>>> ##### Total Number of Replaced Transactions (Rule #5)
>>>>>
>>>>> The package cannot replace more than 100 mempool transactions. This i=
s
>>>>> identical
>>>>> to BIP125 Rule #5.
>>>>>
>>>>> ### Expected FAQs
>>>>>
>>>>> 1. Is it possible for only some of the package to make it into the
>>>>> mempool?
>>>>>
>>>>>    Yes, it is. However, since we evict transactions from the mempool =
by
>>>>> descendant score and the package child is supposed to be sponsoring
>>>>> the fees of
>>>>> its parents, the most common scenario would be all-or-nothing. This i=
s
>>>>> incentive-compatible. In fact, to be conservative, package validation
>>>>> should
>>>>> begin by trying to submit all of the transactions individually, and
>>>>> only use the
>>>>> package mempool acceptance logic if the parents fail due to low
>>>>> feerate.
>>>>>
>>>>> 2. Should we allow packages to contain already-confirmed transactions=
?
>>>>>
>>>>>     No, for practical reasons. In mempool validation, we actually
>>>>> aren't able to
>>>>> tell with 100% confidence if we are looking at a transaction that has
>>>>> already
>>>>> confirmed, because we look up inputs using a UTXO set. If we have
>>>>> historical
>>>>> block data, it's possible to look for it, but this is inefficient, no=
t
>>>>> always
>>>>> possible for pruning nodes, and unnecessary because we're not going t=
o
>>>>> do
>>>>> anything with the transaction anyway. As such, we already have the
>>>>> expectation
>>>>> that transaction relay is somewhat "stateful" i.e. nobody should be
>>>>> relaying
>>>>> transactions that have already been confirmed. Similarly, we shouldn'=
t
>>>>> be
>>>>> relaying packages that contain already-confirmed transactions.
>>>>>
>>>>> [1]: https://github.com/bitcoin/bitcoin/pull/22290
>>>>> [2]:
>>>>> https://github.com/bitcoin/bips/blob/1f0b563738199ca60d32b4ba779797fc=
97d040fe/bip-0141.mediawiki#transaction-size-calculations
>>>>> [3]:
>>>>> https://github.com/bitcoin/bitcoin/blob/94f83534e4b771944af7d9ed0f407=
46f392eb75e/src/policy/policy.cpp#L282
>>>>> [4]: https://github.com/bitcoin/bitcoin/pull/16400
>>>>> [5]: https://github.com/bitcoin/bitcoin/pull/21062
>>>>> [6]: https://github.com/bitcoin/bitcoin/pull/22675
>>>>> [7]: https://github.com/bitcoin/bitcoin/pull/22796
>>>>> [8]: https://github.com/bitcoin/bitcoin/pull/20833
>>>>> [9]: https://github.com/bitcoin/bitcoin/pull/21800
>>>>> [10]: https://github.com/bitcoin/bitcoin/pull/16401
>>>>> [11]: https://github.com/bitcoin/bitcoin/pull/19621
>>>>> [12]: https://github.com/bitcoin/bips/blob/master/bip-0125.mediawiki
>>>>> [13]:
>>>>> https://github.com/bitcoin/bitcoin/pull/6871/files#diff-34d21af3c614e=
a3cee120df276c9c4ae95053830d7f1d3deaf009a4625409ad2R1101-R1104
>>>>> [14]:
>>>>> https://user-images.githubusercontent.com/25183001/133567078-075a971c=
-0619-4339-9168-b41fd2b90c28.png
>>>>> [15]:
>>>>> https://user-images.githubusercontent.com/25183001/132856734-fc17da75=
-f875-44bb-b954-cb7a1725cc0d.png
>>>>> [16]:
>>>>> https://user-images.githubusercontent.com/25183001/133567347-a3e2e4a8=
-ae9c-49f8-abb9-81e8e0aba224.png
>>>>> [17]:
>>>>> https://user-images.githubusercontent.com/25183001/133567370-21566d0e=
-36c8-4831-b1a8-706634540af3.png
>>>>> [18]:
>>>>> https://user-images.githubusercontent.com/25183001/133567444-bfff1142=
-439f-4547-800a-2ba2b0242bcb.png
>>>>> [19]:
>>>>> https://user-images.githubusercontent.com/25183001/133456219-0bb447cb=
-dcb4-4a31-b9c1-7d86205b68bc.png
>>>>> [20]:
>>>>> https://user-images.githubusercontent.com/25183001/132857787-7b7c6f56=
-af96-44c8-8d78-983719888c19.png
>>>>> _______________________________________________
>>>>> bitcoin-dev mailing list
>>>>> bitcoin-dev@lists.linuxfoundation.org
>>>>> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev
>>>>>
>>>>

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<div dir=3D"ltr">Great, thanks for this clarification!<div><br></div><div>C=
an you confirm that this won&#39;t be an issue either with your</div><div>e=
xample 2C (in your first set of diagrams)? If I understand it</div><div>cor=
rectly it shouldn&#39;t, but I&#39;d rather be 100% sure.</div><div><br></d=
iv><div>A package A=C2=A0+ C will be able to replace A&#39;=C2=A0+ B regard=
less of</div><div>the weight of A&#39;=C2=A0+ B?</div><div><br></div><div>T=
hanks,</div><div>Bastien</div></div><br><div class=3D"gmail_quote"><div dir=
=3D"ltr" class=3D"gmail_attr">Le=C2=A0mar. 21 sept. 2021 =C3=A0=C2=A018:42,=
 Gloria Zhao &lt;<a href=3D"mailto:gloriajzhao@gmail.com">gloriajzhao@gmail=
.com</a>&gt; a =C3=A9crit=C2=A0:<br></div><blockquote class=3D"gmail_quote"=
 style=3D"margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);p=
adding-left:1ex"><div dir=3D"ltr"><div>Hi Bastien,</div><div><br></div><div=
>Excellent diagram :D</div><div><br></div><div>&gt; Here the issue is that =
a revoked commitment tx A&#39; is pinned in other<br>&gt; mempools, with a =
long chain of descendants (or descendants that reach<br>&gt; the maximum re=
placeable size).</div><div>&gt; We would really like A + C to be able to re=
place this pinned A&#39;.<br>&gt; We can&#39;t submit individually because =
A on its own won&#39;t replace A&#39;...<span><br></span></div><div><br></d=
iv><div>Right, this is a key motivation for having Package RBF. In this cas=
e, A+C can replace A&#39; + B1...B24.</div><div><br></div><div> Due to the =
descendant limit (each node operator can increase it on their own node, but=
 the default is 25), A&#39; should have no more than 25 descendants, even i=
ncluding CPFP carve out. As long as A only conflicts with A&#39;, it won&#3=
9;t be trying to replace more than 100 transactions. The proposed package R=
BF will allow C to pay for A&#39;s conflicts, since their package feerate i=
s used in the fee comparisons. A is not a descendant of A&#39;, so the exis=
tence of B1...B24 does not prevent the replacement.</div><div><br></div><di=
v>Best,</div><div>Gloria<br></div></div><br><div class=3D"gmail_quote"><div=
 dir=3D"ltr" class=3D"gmail_attr">On Tue, Sep 21, 2021 at 4:18 PM Bastien T=
EINTURIER &lt;<a href=3D"mailto:bastien@acinq.fr" target=3D"_blank">bastien=
@acinq.fr</a>&gt; wrote:<br></div><blockquote class=3D"gmail_quote" style=
=3D"margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding=
-left:1ex"><div dir=3D"ltr">Hi Gloria,<br><br>&gt; I believe this attack is=
 mitigated as long as we attempt to submit transactions individually<br><br=
>Unfortunately not, as there exists a pinning scenario in LN where a<br>dif=
ferent commit tx is pinned, but you actually can&#39;t know which one.<br><=
br>Since I really like your diagrams, I made one as well to illustrate:<br>=
<a href=3D"https://user-images.githubusercontent.com/31281497/134198114-5e9=
c6857-e8fc-405a-be57-18181d5e54cb.jpg" target=3D"_blank">https://user-image=
s.githubusercontent.com/31281497/134198114-5e9c6857-e8fc-405a-be57-18181d5e=
54cb.jpg</a><br><br>Here the issue is that a revoked commitment tx A&#39; i=
s pinned in other<br>mempools, with a long chain of descendants (or descend=
ants that reach<br>the maximum replaceable size).<br><br>We would really li=
ke A + C to be able to replace this pinned A&#39;.<br>We can&#39;t submit i=
ndividually because A on its own won&#39;t replace A&#39;...<br><br>&gt; I =
would note that this proposal doesn&#39;t accommodate something like diagra=
m B, where C is getting CPFP carve out and wants to bring a +1<br><br>No wo=
rries, that case shouldn&#39;t be a concern.<br>I believe any L2 protocol c=
an always ensure it confirms such tx trees<br>&quot;one depth after the oth=
er&quot; without impacting funds safety, so it<br>only needs to ensure A + =
C can get into mempools.<br><br>Thanks,<br>Bastien</div><br><div class=3D"g=
mail_quote"><div dir=3D"ltr" class=3D"gmail_attr">Le=C2=A0mar. 21 sept. 202=
1 =C3=A0=C2=A013:18, Gloria Zhao &lt;<a href=3D"mailto:gloriajzhao@gmail.co=
m" target=3D"_blank">gloriajzhao@gmail.com</a>&gt; a =C3=A9crit=C2=A0:<br><=
/div><blockquote class=3D"gmail_quote" style=3D"margin:0px 0px 0px 0.8ex;bo=
rder-left:1px solid rgb(204,204,204);padding-left:1ex"><div dir=3D"ltr"><di=
v>Hi Bastien,</div><div><br></div><div>Thank you for your feedback!<br></di=
v><div><br></div><div>&gt; In your example we have a parent transaction A a=
lready in the mempool<br>&gt; and an unrelated child B. We submit a package=
 C + D where C spends<br>&gt; another of A&#39;s inputs. You&#39;re highlig=
hting that this package may be<br>&gt; rejected because of the unrelated tr=
ansaction(s) B.<br><br>&gt; The way I see this, an attacker can abuse this =
rule to ensure<br>&gt; transaction A stays pinned in the mempool without co=
nfirming by<br>&gt; broadcasting a set of child transactions that reach the=
se limits<br>&gt; and pay low fees (where A would be a commit tx in LN).</d=
iv><div><br></div><div>I believe you are describing a pinning attack in whi=
ch your adversarial counterparty attempts to monopolize the mempool descend=
ant limit of the shared=C2=A0 transaction A in order to prevent you from su=
bmitting a fee-bumping child C; I&#39;ve tried to illustrate this as diagra=
m A here: <a href=3D"https://user-images.githubusercontent.com/25183001/134=
159860-068080d0-bbb6-4356-ae74-00df00644c74.png" target=3D"_blank">https://=
user-images.githubusercontent.com/25183001/134159860-068080d0-bbb6-4356-ae7=
4-00df00644c74.png</a> (please let me know if I&#39;m misunderstanding).</d=
iv><div><br></div><div>I believe this attack is mitigated as long as we att=
empt to submit transactions individually (and thus take advantage of CPFP c=
arve out) before attempting package validation. So, in scenario A2, even if=
 the mempool receives a package with A+C, it would deduplicate A, submit C =
as an individual transaction, and allow it due to the CPFP carve out exempt=
ion. A more general goal is: if a transaction would propagate successfully =
on its own now, it should still propagate regardless of whether it is inclu=
ded in a package. The best way to ensure this, as far as I can tell, is to =
always try to submit them individually first.<br></div><div><br></div><div>=
I would note that this proposal doesn&#39;t accommodate something like diag=
ram B, where C is getting CPFP carve out and wants to bring a=C2=A0+1 (e.g.=
 C has very low fees and is bumped by D). I don&#39;t think this is a use c=
ase since C should be the one fee-bumping A, but since we&#39;re talking ab=
out limitations around the CPFP carve out, this is it.</div><div><br></div>=
<div>Let me know if this addresses your concerns?<br></div><div><br></div><=
div>Thanks,</div><div>Gloria<br></div></div><br><div class=3D"gmail_quote">=
<div dir=3D"ltr" class=3D"gmail_attr">On Mon, Sep 20, 2021 at 10:19 AM Bast=
ien TEINTURIER &lt;<a href=3D"mailto:bastien@acinq.fr" target=3D"_blank">ba=
stien@acinq.fr</a>&gt; wrote:<br></div><blockquote class=3D"gmail_quote" st=
yle=3D"margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padd=
ing-left:1ex"><div dir=3D"ltr">Hi Gloria,<br><br>Thanks for this detailed p=
ost!<br><br>The illustrations you provided are very useful for this kind of=
 graph<br>topology problems.<br><br>The rules you lay out for package RBF l=
ook good to me at first glance<br>as there are some subtle improvements com=
pared to BIP 125.<br><br>&gt; 1. A package cannot exceed `MAX_PACKAGE_COUNT=
=3D25` count and<br>&gt; `MAX_PACKAGE_SIZE=3D101KvB` total size [8]<br><br>=
I have a question regarding this rule, as your example 2C could be<br>conce=
rning for LN (unless I didn&#39;t understand it correctly).<br><br>This als=
o touches on the package RBF rule 5 (&quot;The package cannot<br>replace mo=
re than 100 mempool transactions.&quot;)<br><br>In your example we have a p=
arent transaction A already in the mempool<br>and an unrelated child B. We =
submit a package C + D where C spends<br>another of A&#39;s inputs. You&#39=
;re highlighting that this package may be<br>rejected because of the unrela=
ted transaction(s) B.<br><br>The way I see this, an attacker can abuse this=
 rule to ensure<br>transaction A stays pinned in the mempool without confir=
ming by<br>broadcasting a set of child transactions that reach these limits=
<br>and pay low fees (where A would be a commit tx in LN).<br><br>We had to=
 create the CPFP carve-out rule explicitly to work around<br>this limitatio=
n, and I think it would be necessary for package RBF<br>as well, because in=
 such cases we do want to be able to submit a<br>package A + C where C pays=
 high fees to speed up A&#39;s confirmation,<br>regardless of unrelated unc=
onfirmed children of A...<br><br>We could submit only C to benefit from the=
 existing CPFP carve-out<br>rule, but that wouldn&#39;t work if our local m=
empool doesn&#39;t have A yet,<br>but other remote mempools do.<br><br>Is m=
y concern justified? Is this something that we should dig into a<br>bit dee=
per?<br><br>Thanks,<br>Bastien</div><br><div class=3D"gmail_quote"><div dir=
=3D"ltr" class=3D"gmail_attr">Le=C2=A0jeu. 16 sept. 2021 =C3=A0=C2=A009:55,=
 Gloria Zhao via bitcoin-dev &lt;<a href=3D"mailto:bitcoin-dev@lists.linuxf=
oundation.org" target=3D"_blank">bitcoin-dev@lists.linuxfoundation.org</a>&=
gt; a =C3=A9crit=C2=A0:<br></div><blockquote class=3D"gmail_quote" style=3D=
"margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-le=
ft:1ex"><div dir=3D"ltr">Hi there,<br><br>I&#39;m writing to propose a set =
of mempool policy changes to enable package<br>validation (in preparation f=
or package relay) in Bitcoin Core. These would not<br>be consensus or P2P p=
rotocol changes. However, since mempool policy<br>significantly affects tra=
nsaction propagation, I believe this is relevant for<br>the mailing list.<b=
r><br>My proposal enables packages consisting of multiple parents and 1 chi=
ld. If you<br>develop software that relies on specific transaction relay as=
sumptions and/or<br>are interested in using package relay in the future, I&=
#39;m very interested to hear<br>your feedback on the utility or restrictiv=
eness of these package policies for<br>your use cases.<br><br>A draft imple=
mentation of this proposal can be found in [Bitcoin Core<br>PR#22290][1].<b=
r><br>An illustrated version of this post can be found at<br><div><a href=
=3D"https://gist.github.com/glozow/dc4e9d5c5b14ade7cdfac40f43adb18a" target=
=3D"_blank">https://gist.github.com/glozow/dc4e9d5c5b14ade7cdfac40f43adb18a=
</a>.</div><div>I have also linked the images below.</div><br>## Background=
<br><br>Feel free to skip this section if you are already familiar with mem=
pool policy<br>and package relay terminology.<br><br>### Terminology Clarif=
ications<br><br>* Package =3D an ordered list of related transactions, repr=
esentable by a Directed<br>=C2=A0 Acyclic Graph.<br>* Package Feerate =3D t=
he total modified fees divided by the total virtual size of<br>=C2=A0 all t=
ransactions in the package.<br>=C2=A0 =C2=A0 - Modified fees =3D a transact=
ion&#39;s base fees + fee delta applied by the user<br>=C2=A0 =C2=A0 =C2=A0=
 with `prioritisetransaction`. As such, we expect this to vary across<br>me=
mpools.<br>=C2=A0 =C2=A0 - Virtual Size =3D the maximum of virtual sizes ca=
lculated using [BIP141<br>=C2=A0 =C2=A0 =C2=A0 virtual size][2] and sigop w=
eight. [Implemented here in Bitcoin Core][3].<br>=C2=A0 =C2=A0 - Note that =
feerate is not necessarily based on the base fees and serialized<br>=C2=A0 =
=C2=A0 =C2=A0 size.<br><br>* Fee-Bumping =3D user/wallet actions that take =
advantage of miner incentives to<br>=C2=A0 boost a transaction&#39;s candid=
acy for inclusion in a block, including Child Pays<br>for Parent (CPFP) and=
 [BIP125][12] Replace-by-Fee (RBF). Our intention in<br>mempool policy is t=
o recognize when the new transaction is more economical to<br>mine than the=
 original one(s) but not open DoS vectors, so there are some<br>limitations=
.<br><br>### Policy<br><br>The purpose of the mempool is to store the best =
(to be most incentive-compatible<br>with miners, highest feerate) candidate=
s for inclusion in a block. Miners use<br>the mempool to build block templa=
tes. The mempool is also useful as a cache for<br>boosting block relay and =
validation performance, aiding transaction relay, and<br>generating feerate=
 estimations.<br><br>Ideally, all consensus-valid transactions paying reaso=
nable fees should make it<br>to miners through normal transaction relay, wi=
thout any special connectivity or<br>relationships with miners. On the othe=
r hand, nodes do not have unlimited<br>resources, and a P2P network designe=
d to let any honest node broadcast their<br>transactions also exposes the t=
ransaction validation engine to DoS attacks from<br>malicious peers.<br><br=
>As such, for unconfirmed transactions we are considering for our mempool, =
we<br>apply a set of validation rules in addition to consensus, primarily t=
o protect<br>us from resource exhaustion and aid our efforts to keep the hi=
ghest fee<br>transactions. We call this mempool _policy_: a set of (configu=
rable,<br>node-specific) rules that transactions must abide by in order to =
be accepted<br>into our mempool. Transaction &quot;Standardness&quot; rules=
 and mempool restrictions such<br>as &quot;too-long-mempool-chain&quot; are=
 both examples of policy.<br><br>### Package Relay and Package Mempool Acce=
pt<br><br>In transaction relay, we currently consider transactions one at a=
 time for<br>submission to the mempool. This creates a limitation in the no=
de&#39;s ability to<br>determine which transactions have the highest feerat=
es, since we cannot take<br>into account descendants (i.e. cannot use CPFP)=
 until all the transactions are<br>in the mempool. Similarly, we cannot use=
 a transaction&#39;s descendants when<br>considering it for RBF. When an in=
dividual transaction does not meet the mempool<br>minimum feerate and the u=
ser isn&#39;t able to create a replacement transaction<br>directly, it will=
 not be accepted by mempools.<br><br>This limitation presents a security is=
sue for applications and users relying on<br>time-sensitive transactions. F=
or example, Lightning and other protocols create<br>UTXOs with multiple spe=
nding paths, where one counterparty&#39;s spending path opens<br>up after a=
 timelock, and users are protected from cheating scenarios as long as<br>th=
ey redeem on-chain in time. A key security assumption is that all parties&#=
39;<br>transactions will propagate and confirm in a timely manner. This ass=
umption can<br>be broken if fee-bumping does not work as intended.<br><br>T=
he end goal for Package Relay is to consider multiple transactions at the s=
ame<br>time, e.g. a transaction with its high-fee child. This may help us b=
etter<br>determine whether transactions should be accepted to our mempool, =
especially if<br>they don&#39;t meet fee requirements individually or are b=
etter RBF candidates as a<br>package. A combination of changes to mempool v=
alidation logic, policy, and<br>transaction relay allows us to better propa=
gate the transactions with the<br>highest package feerates to miners, and m=
akes fee-bumping tools more powerful<br>for users.<br><br>The &quot;relay&q=
uot; part of Package Relay suggests P2P messaging changes, but a large<br>p=
art of the changes are in the mempool&#39;s package validation logic. We ca=
ll this<br>*Package Mempool Accept*.<br><br>### Previous Work<br><br>* Give=
n that mempool validation is DoS-sensitive and complex, it would be<br>=C2=
=A0 dangerous to haphazardly tack on package validation logic. Many efforts=
 have<br>been made to make mempool validation less opaque (see [#16400][4],=
 [#21062][5],<br>[#22675][6], [#22796][7]).<br>* [#20833][8] Added basic ca=
pabilities for package validation, test accepts only<br>=C2=A0 (no submissi=
on to mempool).<br>* [#21800][9] Implemented package ancestor/descendant li=
mit checks for arbitrary<br>=C2=A0 packages. Still test accepts only.<br>* =
Previous package relay proposals (see [#16401][10], [#19621][11]).<br><br>#=
## Existing Package Rules<br><br>These are in master as introduced in [#208=
33][8] and [#21800][9]. I&#39;ll consider<br>them as &quot;given&quot; in t=
he rest of this document, though they can be changed, since<br>package vali=
dation is test-accept only right now.<br><br>1. A package cannot exceed `MA=
X_PACKAGE_COUNT=3D25` count and<br>`MAX_PACKAGE_SIZE=3D101KvB` total size [=
8]<br><br>=C2=A0 =C2=A0*Rationale*: This is already enforced as mempool anc=
estor/descendant limits.<br>Presumably, transactions in a package are all r=
elated, so exceeding this limit<br>would mean that the package can either b=
e split up or it wouldn&#39;t pass this<br>mempool policy.<br><br>2. Packag=
es must be topologically sorted: if any dependencies exist between<br>trans=
actions, parents must appear somewhere before children. [8]<br><br>3. A pac=
kage cannot have conflicting transactions, i.e. none of them can spend<br><=
div>the same inputs. This also means there cannot be duplicate transactions=
. [8]</div><div><br></div>4. When packages are evaluated against ancestor/d=
escendant limits in a test<br>accept, the union of all of their descendants=
 and ancestors is considered. This<br>is essentially a &quot;worst case&quo=
t; heuristic where every transaction in the package<br>is treated as each o=
ther&#39;s ancestor and descendant.  [8]<br>Packages for which ancestor/des=
cendant limits are accurately captured by this<br><div>heuristic: [19]</div=
><br>There are also limitations such as the fact that CPFP carve out is not=
 applied<br>to package transactions. #20833 also disables RBF in package va=
lidation; this<br>proposal overrides that to allow packages to use RBF.<br>=
<br>## Proposed Changes<br><br>The next step in the Package Mempool Accept =
project is to implement submission<br>to mempool, initially through RPC onl=
y. This allows us to test the submission<br>logic before exposing it on P2P=
.<br><br>### Summary<br><br>- Packages may contain already-in-mempool trans=
actions.<br>- Packages are 2 generations, Multi-Parent-1-Child.<br>- Fee-re=
lated checks use the package feerate. This means that wallets can<br>create=
 a package that utilizes CPFP.<br>- Parents are allowed to RBF mempool tran=
sactions with a set of rules similar<br>=C2=A0 to BIP125. This enables a co=
mbination of CPFP and RBF, where a<br>transaction&#39;s descendant fees pay=
 for replacing mempool conflicts.<br><br>There is a draft implementation in=
 [#22290][1]. It is WIP, but feedback is<br>always welcome.<br><br>### Deta=
ils<br><br>#### Packages May Contain Already-in-Mempool Transactions<br><br=
>A package may contain transactions that are already in the mempool. We rem=
ove<br>(&quot;deduplicate&quot;) those transactions from the package for th=
e purposes of package<br>mempool acceptance. If a package is empty after de=
duplication, we do nothing.<br><br>*Rationale*: Mempools vary across the ne=
twork. It&#39;s possible for a parent to be<br>accepted to the mempool of a=
 peer on its own due to differences in policy and<br>fee market fluctuation=
s. We should not reject or penalize the entire package for<br>an individual=
 transaction as that could be a censorship vector.<br><br>#### Packages Are=
 Multi-Parent-1-Child<br><br>Only packages of a specific topology are permi=
tted. Namely, a package is exactly<br>1 child with all of its unconfirmed p=
arents. After deduplication, the package<br>may be exactly the same, empty,=
 1 child, 1 child with just some of its<br>unconfirmed parents, etc. Note t=
hat it&#39;s possible for the parents to be indirect<br>descendants/ancesto=
rs of one another, or for parent and child to share a parent,<br>so we cann=
ot make any other topology assumptions.<br><br>*Rationale*: This allows for=
 fee-bumping by CPFP. Allowing multiple parents<br>makes it possible to fee=
-bump a batch of transactions. Restricting packages to a<br>defined topolog=
y is also easier to reason about and simplifies the validation<br>logic gre=
atly. Multi-parent-1-child allows us to think of the package as one big<br>=
transaction, where:<br><br>- Inputs =3D all the inputs of parents + inputs =
of the child that come from<br>=C2=A0 confirmed UTXOs<br>- Outputs =3D all =
the outputs of the child + all outputs of the parents that<br>=C2=A0 aren&#=
39;t spent by other transactions in the package<br><br>Examples of packages=
 that follow this rule (variations of example A show some<br>possibilities =
after deduplication): ![image][15]<br><br>#### Fee-Related Checks Use Packa=
ge Feerate<br><br>Package Feerate =3D the total modified fees divided by th=
e total virtual size of<br>all transactions in the package.<br><br>To meet =
the two feerate requirements of a mempool, i.e., the pre-configured<br>mini=
mum relay feerate (`minRelayTxFee`) and dynamic mempool minimum feerate, th=
e<br>total package feerate is used instead of the individual feerate. The i=
ndividual<br>transactions are allowed to be below feerate requirements if t=
he package meets<br>the feerate requirements. For example, the parent(s) in=
 the package can have 0<br>fees but be paid for by the child.<br><br>*Ratio=
nale*: This can be thought of as &quot;CPFP within a package,&quot; solving=
 the<br>issue of a parent not meeting minimum fees on its own. This allows =
L2<br>applications to adjust their fees at broadcast time instead of oversh=
ooting or<br>risking getting stuck/pinned.<br><br>We use the package feerat=
e of the package *after deduplication*.<br><br>*Rationale*: =C2=A0It would =
be incorrect to use the fees of transactions that are<br>already in the mem=
pool, as we do not want a transaction&#39;s fees to be<br>double-counted fo=
r both its individual RBF and package RBF.<br><br>Examples F and G [14] sho=
w the same package, but P1 is submitted individually before<br>the package =
in example G. In example F, we can see that the 300vB package pays<br>an ad=
ditional 200sat in fees, which is not enough to pay for its own bandwidth<b=
r>(BIP125#4). In example G, we can see that P1 pays enough to replace M1, b=
ut<br>using P1&#39;s fees again during package submission would make it loo=
k like a 300sat<br>increase for a 200vB package. Even including its fees an=
d size would not be<br>sufficient in this example, since the 300sat looks l=
ike enough for the 300vB<br>package. The calculcation after deduplication i=
s 100sat increase for a package<br>of size 200vB, which correctly fails BIP=
125#4. Assume all transactions have a<br>size of 100vB.<br><br>#### Package=
 RBF<br><br>If a package meets feerate requirements as a package, the paren=
ts in the<br>transaction are allowed to replace-by-fee mempool transactions=
. The child cannot<br>replace mempool transactions. Multiple transactions c=
an replace the same<br>transaction, but in order to be valid, none of the t=
ransactions can try to<br>replace an ancestor of another transaction in the=
 same package (which would thus<br>make its inputs unavailable).<br><br>*Ra=
tionale*: Even if we are using package feerate, a package will not propagat=
e<br>as intended if RBF still requires each individual transaction to meet =
the<br>feerate requirements.<br><br>We use a set of rules slightly modified=
 from BIP125 as follows:<br><br>##### Signaling (Rule #1)<br><br>All mempoo=
l transactions to be replaced must signal replaceability.<br><br>*Rationale=
*: Package RBF signaling logic should be the same for package RBF and<br>si=
ngle transaction acceptance. This would be updated if single transaction<br=
>validation moves to full RBF.<br><br>##### New Unconfirmed Inputs (Rule #2=
)<br><br>A package may include new unconfirmed inputs, but the ancestor fee=
rate of the<br>child must be at least as high as the ancestor feerates of e=
very transaction<br>being replaced. This is contrary to BIP125#2, which sta=
tes &quot;The replacement<br>transaction may only include an unconfirmed in=
put if that input was included in<br>one of the original transactions. (An =
unconfirmed input spends an output from a<br>currently-unconfirmed transact=
ion.)&quot;<br><br>*Rationale*: The purpose of BIP125#2 is to ensure that t=
he replacement<br>transaction has a higher ancestor score than the original=
 transaction(s) (see<br>[comment][13]). Example H [16] shows how adding a n=
ew unconfirmed input can lower the<br>ancestor score of the replacement tra=
nsaction. P1 is trying to replace M1, and<br>spends an unconfirmed output o=
f M2. P1 pays 800sat, M1 pays 600sat, and M2 pays<br>100sat. Assume all tra=
nsactions have a size of 100vB. While, in isolation, P1<br>looks like a bet=
ter mining candidate than M1, it must be mined with M2, so its<br>ancestor =
feerate is actually 4.5sat/vB.=C2=A0 This is lower than M1&#39;s ancestor<b=
r>feerate, which is 6sat/vB.<br><br>In package RBF, the rule analogous to B=
IP125#2 would be &quot;none of the<br>transactions in the package can spend=
 new unconfirmed inputs.&quot; Example J [17] shows<br>why, if any of the p=
ackage transactions have ancestors, package feerate is no<br>longer accurat=
e. Even though M2 and M3 are not ancestors of P1 (which is the<br>replaceme=
nt transaction in an RBF), we&#39;re actually interested in the entire<br>p=
ackage. A miner should mine M1 which is 5sat/vB instead of M2, M3, P1, P2, =
and<br>P3, which is only 4sat/vB. The Package RBF rule cannot be loosened t=
o only allow<br>the child to have new unconfirmed inputs, either, because i=
t can still cause us<br>to overestimate the package&#39;s ancestor score.<b=
r><br>However, enforcing a rule analogous to BIP125#2 would not only make P=
ackage RBF<br>less useful, but would also break Package RBF for packages wi=
th parents already<br>in the mempool: if a package parent has already been =
submitted, it would look<br>like the child is spending a &quot;new&quot; un=
confirmed input. In example K [18], we&#39;re<br>looking to replace M1 with=
 the entire package including P1, P2, and P3. We must<br>consider the case =
where one of the parents is already in the mempool (in this<br>case, P2), w=
hich means we must allow P3 to have new unconfirmed inputs. However,<br>M2 =
lowers the ancestor score of P3 to 4.3sat/vB, so we should not replace M1<b=
r>with this package.<br><br>Thus, the package RBF rule regarding new unconf=
irmed inputs is less strict than<br>BIP125#2. However, we still achieve the=
 same goal of requiring the replacement<br>transactions to have a ancestor =
score at least as high as the original ones. As<br>a result, the entire pac=
kage is required to be a higher feerate mining candidate<br>than each of th=
e replaced transactions.<br><br>Another note: the [comment][13] above the B=
IP125#2 code in the original RBF<br>implementation suggests that the rule w=
as intended to be temporary.<br><br>##### Absolute Fee (Rule #3)<br><br>The=
 package must increase the absolute fee of the mempool, i.e. the total fees=
<br>of the package must be higher than the absolute fees of the mempool tra=
nsactions<br>it replaces. Combined with the CPFP rule above, this differs f=
rom BIP125 Rule #3<br>- an individual transaction in the package may have l=
ower fees than the<br>=C2=A0 transaction(s) it is replacing. In fact, it ma=
y have 0 fees, and the child<br>pays for RBF.<br><br>##### Feerate (Rule #4=
)<br><br>The package must pay for its own bandwidth; the package feerate mu=
st be higher<br>than the replaced transactions by at least minimum relay fe=
erate<br>(`incrementalRelayFee`). Combined with the CPFP rule above, this d=
iffers from<br>BIP125 Rule #4 - an individual transaction in the package ca=
n have a lower<br>feerate than the transaction(s) it is replacing. In fact,=
 it may have 0 fees,<br>and the child pays for RBF.<br><br>##### Total Numb=
er of Replaced Transactions (Rule #5)<br><br>The package cannot replace mor=
e than 100 mempool transactions. This is identical<br>to BIP125 Rule #5.<br=
><br>### Expected FAQs<br><br>1. Is it possible for only some of the packag=
e to make it into the mempool?<br><br>=C2=A0 =C2=A0Yes, it is. However, sin=
ce we evict transactions from the mempool by<br>descendant score and the pa=
ckage child is supposed to be sponsoring the fees of<br>its parents, the mo=
st common scenario would be all-or-nothing. This is<br>incentive-compatible=
. In fact, to be conservative, package validation should<br>begin by trying=
 to submit all of the transactions individually, and only use the<br>packag=
e mempool acceptance logic if the parents fail due to low feerate.<br><br>2=
. Should we allow packages to contain already-confirmed transactions?<br><b=
r>=C2=A0 =C2=A0 No, for practical reasons. In mempool validation, we actual=
ly aren&#39;t able to<br>tell with 100% confidence if we are looking at a t=
ransaction that has already<br>confirmed, because we look up inputs using a=
 UTXO set. If we have historical<br>block data, it&#39;s possible to look f=
or it, but this is inefficient, not always<br>possible for pruning nodes, a=
nd unnecessary because we&#39;re not going to do<br>anything with the trans=
action anyway. As such, we already have the expectation<br>that transaction=
 relay is somewhat &quot;stateful&quot; i.e. nobody should be relaying<br>t=
ransactions that have already been confirmed. Similarly, we shouldn&#39;t b=
e<br>relaying packages that contain already-confirmed transactions.<br><br>=
[1]: <a href=3D"https://github.com/bitcoin/bitcoin/pull/22290" target=3D"_b=
lank">https://github.com/bitcoin/bitcoin/pull/22290</a><br>[2]: <a href=3D"=
https://github.com/bitcoin/bips/blob/1f0b563738199ca60d32b4ba779797fc97d040=
fe/bip-0141.mediawiki#transaction-size-calculations" target=3D"_blank">http=
s://github.com/bitcoin/bips/blob/1f0b563738199ca60d32b4ba779797fc97d040fe/b=
ip-0141.mediawiki#transaction-size-calculations</a><br>[3]: <a href=3D"http=
s://github.com/bitcoin/bitcoin/blob/94f83534e4b771944af7d9ed0f40746f392eb75=
e/src/policy/policy.cpp#L282" target=3D"_blank">https://github.com/bitcoin/=
bitcoin/blob/94f83534e4b771944af7d9ed0f40746f392eb75e/src/policy/policy.cpp=
#L282</a><br>[4]: <a href=3D"https://github.com/bitcoin/bitcoin/pull/16400"=
 target=3D"_blank">https://github.com/bitcoin/bitcoin/pull/16400</a><br>[5]=
: <a href=3D"https://github.com/bitcoin/bitcoin/pull/21062" target=3D"_blan=
k">https://github.com/bitcoin/bitcoin/pull/21062</a><br>[6]: <a href=3D"htt=
ps://github.com/bitcoin/bitcoin/pull/22675" target=3D"_blank">https://githu=
b.com/bitcoin/bitcoin/pull/22675</a><br>[7]: <a href=3D"https://github.com/=
bitcoin/bitcoin/pull/22796" target=3D"_blank">https://github.com/bitcoin/bi=
tcoin/pull/22796</a><br>[8]: <a href=3D"https://github.com/bitcoin/bitcoin/=
pull/20833" target=3D"_blank">https://github.com/bitcoin/bitcoin/pull/20833=
</a><br>[9]: <a href=3D"https://github.com/bitcoin/bitcoin/pull/21800" targ=
et=3D"_blank">https://github.com/bitcoin/bitcoin/pull/21800</a><br>[10]: <a=
 href=3D"https://github.com/bitcoin/bitcoin/pull/16401" target=3D"_blank">h=
ttps://github.com/bitcoin/bitcoin/pull/16401</a><br>[11]: <a href=3D"https:=
//github.com/bitcoin/bitcoin/pull/19621" target=3D"_blank">https://github.c=
om/bitcoin/bitcoin/pull/19621</a><br>[12]: <a href=3D"https://github.com/bi=
tcoin/bips/blob/master/bip-0125.mediawiki" target=3D"_blank">https://github=
.com/bitcoin/bips/blob/master/bip-0125.mediawiki</a><br>[13]: <a href=3D"ht=
tps://github.com/bitcoin/bitcoin/pull/6871/files#diff-34d21af3c614ea3cee120=
df276c9c4ae95053830d7f1d3deaf009a4625409ad2R1101-R1104" target=3D"_blank">h=
ttps://github.com/bitcoin/bitcoin/pull/6871/files#diff-34d21af3c614ea3cee12=
0df276c9c4ae95053830d7f1d3deaf009a4625409ad2R1101-R1104</a><br>[14]: <a hre=
f=3D"https://user-images.githubusercontent.com/25183001/133567078-075a971c-=
0619-4339-9168-b41fd2b90c28.png" target=3D"_blank">https://user-images.gith=
ubusercontent.com/25183001/133567078-075a971c-0619-4339-9168-b41fd2b90c28.p=
ng</a><br>[15]: <a href=3D"https://user-images.githubusercontent.com/251830=
01/132856734-fc17da75-f875-44bb-b954-cb7a1725cc0d.png" target=3D"_blank">ht=
tps://user-images.githubusercontent.com/25183001/132856734-fc17da75-f875-44=
bb-b954-cb7a1725cc0d.png</a><br>[16]: <a href=3D"https://user-images.github=
usercontent.com/25183001/133567347-a3e2e4a8-ae9c-49f8-abb9-81e8e0aba224.png=
" target=3D"_blank">https://user-images.githubusercontent.com/25183001/1335=
67347-a3e2e4a8-ae9c-49f8-abb9-81e8e0aba224.png</a><br>[17]: <a href=3D"http=
s://user-images.githubusercontent.com/25183001/133567370-21566d0e-36c8-4831=
-b1a8-706634540af3.png" target=3D"_blank">https://user-images.githubusercon=
tent.com/25183001/133567370-21566d0e-36c8-4831-b1a8-706634540af3.png</a><br=
>[18]: <a href=3D"https://user-images.githubusercontent.com/25183001/133567=
444-bfff1142-439f-4547-800a-2ba2b0242bcb.png" target=3D"_blank">https://use=
r-images.githubusercontent.com/25183001/133567444-bfff1142-439f-4547-800a-2=
ba2b0242bcb.png</a><br>[19]: <a href=3D"https://user-images.githubuserconte=
nt.com/25183001/133456219-0bb447cb-dcb4-4a31-b9c1-7d86205b68bc.png" target=
=3D"_blank">https://user-images.githubusercontent.com/25183001/133456219-0b=
b447cb-dcb4-4a31-b9c1-7d86205b68bc.png</a><br>[20]: <a href=3D"https://user=
-images.githubusercontent.com/25183001/132857787-7b7c6f56-af96-44c8-8d78-98=
3719888c19.png" target=3D"_blank">https://user-images.githubusercontent.com=
/25183001/132857787-7b7c6f56-af96-44c8-8d78-983719888c19.png</a><br></div>
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