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...306ee832c797d902b3648b08d16_Shielded-CSV-Private-and-Efficient-Client-Side-Validation.xml
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<?xml version='1.0' encoding='UTF-8'?> | ||
<feed xmlns="http://www.w3.org/2005/Atom"> | ||
<id>0</id> | ||
<title>Shielded CSV: Private and Efficient Client-Side Validation</title> | ||
<updated>2024-09-25T02:26:18.242007+00:00</updated> | ||
<author> | ||
<name>Jonas Nick 2024-09-24 13:24:00+00:00</name> | ||
</author> | ||
<generator uri="https://lkiesow.github.io/python-feedgen" version="0.9.0">python-feedgen</generator> | ||
<entry> | ||
<id>0</id> | ||
<title>Shielded CSV: Private and Efficient Client-Side Validation</title> | ||
<updated>2024-09-25T02:26:18.242039+00:00</updated> | ||
<link href="https://gnusha.org/pi/bitcoindev/[email protected]/T/#u#m0b780978f60b0306ee832c797d902b3648b08d16" rel="alternate"/> | ||
<summary>Liam Eagen, Robin Linus, and their team have introduced the Shielded CSV whitepaper, marking a significant advancement in client-side validation (CSV) protocols for cryptocurrencies. The whitepaper elucidates the concept of Shielded CSV, which is an innovative approach to enhance privacy and efficiency in cryptocurrency transactions. Unlike traditional methods that rely heavily on broadcasting every transaction for network verification, Shielded CSV employs a "Proof-Carrying Data" abstraction. This method can be implemented through recursive zkSNARKs or folding schemes, offering a higher degree of privacy by concealing the transaction graph. Furthermore, it maintains that the verification time and coin proofs are not influenced by the transaction history. | ||
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One of the standout features of Shielded CSV is its departure from using standard Bitcoin transactions for CSV payments. Instead, it requires only 64 bytes of data to be posted to the blockchain for each transaction, irrespective of the size of the CSV transaction. This approach significantly reduces the on-chain cost due to its minimal data footprint and constant overhead. The protocol is currently outlined using Rust-based pseudocode, showcasing its potential for practical implementation and future development within the CSV domain. | ||
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The inception of Bitcoin introduced a revolutionary way of enabling transactions between mutually distrustful parties over the internet without a central authority. However, the transparency inherent in Bitcoin's design, necessary for consensus, also compromises user privacy and leads to scalability issues. Traditional private cryptocurrencies like Zcash and Monero attempt to solve these privacy concerns but at the expense of increased demands on communication, computation, and storage. | ||
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Client-Side Validation emerges as a solution to these challenges by offloading transaction validation from the blockchain consensus mechanism. This significantly cuts down on the resources required for transaction processing. Existing CSV implementations on Bitcoin have not fully capitalized on this efficiency, often requiring the publication of ordinary Bitcoin transactions and producing coin proofs whose size scales with the transaction history. | ||
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Shielded CSV represents a leap forward by ensuring private transactions that only necessitate writing a minimal amount of data, termed a "nullifier," to the blockchain. This system drastically reduces the data written to the blockchain and simplifies the verification process for users and non-users alike. Additionally, the protocol enables a dramatic increase in transaction privacy and scalability, potentially supporting up to 100 transactions per second on Bitcoin with adequate infrastructure. | ||
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The paper further outlines the technical foundation of Shielded CSV using the Proof Carrying Data (PCD) abstraction and discusses practical implementation strategies, including Folding Schemes and Recursive STARKs. It concludes with potential future extensions, underscoring the versatility and expansive possibilities for enhancing and building upon the Shielded CSV framework. For those interested, the whitepaper can be accessed [here](https://github.com/ShieldedCSV/ShieldedCSV/releases/latest/download/shieldedcsv.pdf).</summary> | ||
<published>2024-09-24T13:24:00+00:00</published> | ||
</entry> | ||
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static/delvingbitcoin/Sept_2024/3256_File-Format-for-Recovering-Descriptor-Wallets.xml
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<?xml version='1.0' encoding='UTF-8'?> | ||
<feed xmlns="http://www.w3.org/2005/Atom"> | ||
<id>1</id> | ||
<title>File Format for Recovering Descriptor Wallets</title> | ||
<updated>2024-09-25T02:20:20.429412+00:00</updated> | ||
<author> | ||
<name>valuedmammal 2024-09-24 15:36:57.434000+00:00</name> | ||
</author> | ||
<generator uri="https://lkiesow.github.io/python-feedgen" version="0.9.0">python-feedgen</generator> | ||
<entry> | ||
<id>1</id> | ||
<title>File Format for Recovering Descriptor Wallets</title> | ||
<updated>2024-09-25T02:20:20.429449+00:00</updated> | ||
<link href="https://delvingbitcoin.org/t/file-format-for-recovering-descriptor-wallets/1115/2" rel="alternate"/> | ||
<summary>Research and development in software engineering have led to the proposal of integrating a record type specifically for tracking the "last known derivation index." This concept aims at enhancing the efficiency and accuracy of data management within various programming environments. By establishing a systematic approach to monitor the progression of derivation indices, developers can significantly reduce errors associated with data handling and improve the overall reliability of their systems. | ||
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The introduction of this record type is not merely a technical adjustment but rather a strategic enhancement that aligns with modern programming practices. It addresses the complexities involved in managing extensive data sets and streamlines processes for better performance outcomes. The adoption of such a methodological innovation could lead to substantial improvements in how data-driven applications operate, ensuring that they are more robust and user-friendly. | ||
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Moreover, implementing a dedicated record for the "last known derivation index" could pave the way for more sophisticated programming models. It opens up possibilities for advanced data analysis and manipulation techniques that were previously challenging due to the limitations of conventional methods. This progression towards more refined programming strategies signifies a pivotal shift in the technological landscape, highlighting the importance of continuous improvement and adaptation in the field. | ||
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In conclusion, the proposal to incorporate a record type for tracking the "last known derivation index" reflects an insightful response to the evolving demands of software development. It exemplifies a proactive approach to overcoming the challenges of modern programming, emphasizing the necessity for innovative solutions that enhance system efficiency and reliability. This development marks a significant step forward in the pursuit of excellence in the realm of software engineering, underscoring the dynamic nature of technological advancement.</summary> | ||
<published>2024-09-24T15:36:57.434000+00:00</published> | ||
</entry> | ||
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static/delvingbitcoin/Sept_2024/3260_Proving-UTXO-set-inclusion-in-zero-knowledge.xml
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<?xml version='1.0' encoding='UTF-8'?> | ||
<feed xmlns="http://www.w3.org/2005/Atom"> | ||
<id>1</id> | ||
<title>Proving UTXO set inclusion in zero-knowledge</title> | ||
<updated>2024-09-25T02:21:31.616944+00:00</updated> | ||
<author> | ||
<name>halseth 2024-09-24 20:08:00.590000+00:00</name> | ||
</author> | ||
<generator uri="https://lkiesow.github.io/python-feedgen" version="0.9.0">python-feedgen</generator> | ||
<entry> | ||
<id>1</id> | ||
<title>Proving UTXO set inclusion in zero-knowledge</title> | ||
<updated>2024-09-25T02:21:31.616971+00:00</updated> | ||
<link href="https://delvingbitcoin.org/t/proving-utxo-set-inclusion-in-zero-knowledge/1142/11" rel="alternate"/> | ||
<summary>The recent update to the project involves the incorporation of a dynamic accumulator, which marks a significant improvement in handling transactions. This change is aimed at enhancing the efficiency and security of the process. Additionally, a novel approach has been introduced by appending a private key hash at the end of transactions. This method serves as an innovative attempt to craft a private identifier for the output, ensuring a higher level of privacy and security for users. | ||
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This technique leverages the relationship between private keys and public keys within cryptographic operations. By verifying that the private key, when used as a preimage to a hash function, yields the public key, it confirms the latter's inclusion in the Unspent Transaction Output (UTXO) set. Such a mechanism not only bolsters the integrity of transactions but also fortifies the system against potential vulnerabilities or exploits. | ||
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The implementation details and the rationale behind these updates are thoroughly documented in a recent commit to the project repository, accessible via [this link](https://github.com/halseth/utxozkp/commit/6fd00e2077dc82a46074a81b6f01ede316631a39). This documentation provides valuable insights into the technical underpinnings and strategic considerations driving these enhancements, offering a clear view of the project's direction and its commitment to advancing the state of transaction security and efficiency.</summary> | ||
<published>2024-09-24T20:08:00.590000+00:00</published> | ||
</entry> | ||
</feed> |
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static/delvingbitcoin/Sept_2024/3261_Proving-UTXO-set-inclusion-in-zero-knowledge.xml
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<?xml version='1.0' encoding='UTF-8'?> | ||
<feed xmlns="http://www.w3.org/2005/Atom"> | ||
<id>1</id> | ||
<title>Proving UTXO set inclusion in zero-knowledge</title> | ||
<updated>2024-09-25T02:21:18.790444+00:00</updated> | ||
<author> | ||
<name>halseth 2024-09-24 20:08:42.548000+00:00</name> | ||
</author> | ||
<generator uri="https://lkiesow.github.io/python-feedgen" version="0.9.0">python-feedgen</generator> | ||
<entry> | ||
<id>1</id> | ||
<title>Proving UTXO set inclusion in zero-knowledge</title> | ||
<updated>2024-09-25T02:21:18.790470+00:00</updated> | ||
<link href="https://delvingbitcoin.org/t/proving-utxo-set-inclusion-in-zero-knowledge/1142/12" rel="alternate"/> | ||
<summary>The inquiry highlights the capabilities and boundaries of utilizing aut-ct in verifying properties of a UTXO (Unspent Transaction Output) within blockchain technology. The essence of the question revolves around the extent to which aut-ct can be employed to affirm specific types of knowledge or execution proofs concerning a UTXO. Specifically, it probes whether it is feasible to use aut-ct to demonstrate the existence of a witness that allows for the execution of a script associated with a UTXO. This touches on a broader theme of exploring the practical applications and limitations of cryptographic tools in enhancing the security and functionality of blockchain transactions.</summary> | ||
<published>2024-09-24T20:08:42.548000+00:00</published> | ||
</entry> | ||
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static/delvingbitcoin/Sept_2024/3262_Proving-UTXO-set-inclusion-in-zero-knowledge.xml
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<?xml version='1.0' encoding='UTF-8'?> | ||
<feed xmlns="http://www.w3.org/2005/Atom"> | ||
<id>1</id> | ||
<title>Proving UTXO set inclusion in zero-knowledge</title> | ||
<updated>2024-09-25T02:21:11.752159+00:00</updated> | ||
<author> | ||
<name>halseth 2024-09-24 20:28:57.889000+00:00</name> | ||
</author> | ||
<generator uri="https://lkiesow.github.io/python-feedgen" version="0.9.0">python-feedgen</generator> | ||
<entry> | ||
<id>1</id> | ||
<title>Proving UTXO set inclusion in zero-knowledge</title> | ||
<updated>2024-09-25T02:21:11.752192+00:00</updated> | ||
<link href="https://delvingbitcoin.org/t/proving-utxo-set-inclusion-in-zero-knowledge/1142/13" rel="alternate"/> | ||
<summary>In the current system of announcing channels within the Lightning Network (LN), there exists a mechanism that allows nodes to identify when a channel is opened by tracking a specific Unspent Transaction Output (UTXO) on the blockchain. This method facilitates nodes in recognizing when the associated UTXO is spent, enabling them to prune the respective channel from their network graph as necessary. This process ensures that the public channel graph remains updated with active channels, maintaining the network's efficiency and operability. | ||
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However, transitioning into a zero-knowledge setting introduces a notable challenge: it becomes possible to prove the creation of a UTXO within a specified block height range, hence indicating the opening of a channel. Yet, this adjustment obscures the visibility of when exactly a channel is closed since LN nodes would no longer be able to detect the spending of a UTXO directly. This limitation poses a significant hurdle for maintaining an accurate and lean channel graph, especially as the network scales and the public channel graph expands. | ||
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To cope with the increasing complexity and size of the channel graph, light client LN nodes are adopting specific heuristics aimed at optimizing the efficiency of graph pruning. One such heuristic involves eliminating channels from the graph that have not issued a recent channel update. This strategy, among others, is part of an evolving approach designed to manage the growing demands on the network while preserving the privacy and security enhancements offered by moving towards a zero-knowledge framework.</summary> | ||
<published>2024-09-24T20:28:57.889000+00:00</published> | ||
</entry> | ||
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static/delvingbitcoin/Sept_2024/3263_Proving-UTXO-set-inclusion-in-zero-knowledge.xml
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<?xml version='1.0' encoding='UTF-8'?> | ||
<feed xmlns="http://www.w3.org/2005/Atom"> | ||
<id>1</id> | ||
<title>Proving UTXO set inclusion in zero-knowledge</title> | ||
<updated>2024-09-25T02:20:59.614429+00:00</updated> | ||
<author> | ||
<name>Adam Gibson 2024-09-24 20:53:35.232000+00:00</name> | ||
</author> | ||
<generator uri="https://lkiesow.github.io/python-feedgen" version="0.9.0">python-feedgen</generator> | ||
<entry> | ||
<id>1</id> | ||
<title>Proving UTXO set inclusion in zero-knowledge</title> | ||
<updated>2024-09-25T02:20:59.614460+00:00</updated> | ||
<link href="https://delvingbitcoin.org/t/proving-utxo-set-inclusion-in-zero-knowledge/1142/14" rel="alternate"/> | ||
<summary>The inquisitive nature of the query centers around the capabilities and limitations of utilizing aut-ct for proving aspects related to UTXOs, particularly focusing on whether it's feasible to demonstrate knowledge of a witness that would facilitate script execution for a UTXO. The response delineates a clear distinction based on the type of spending public keys (sPKs) involved. For sPKs that are primarily constructed through logical conjunctions of keys or leverage elliptic curve (EC) arithmetic—akin to methods employed in Taproot tweaks—the possibility of generating proofs is deemed straightforward owing to their alignment with EC mathematics. | ||
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However, the scenario shifts significantly when considering sPKs that incorporate hash locks. Due to the inherent challenges associated with proving non-algebraic hashes, such as those produced by SHA2, within this framework, the feasibility of generating succinct and manageable proofs diminishes markedly. This challenge underscores the complexity of designing proofs for hash-based constructs within the aut-ct system, highlighting a notable limitation in its applicability. Consequently, the discussion implicitly advocates for the preference towards utilizing Taproot anonymity sets in examples, which align more closely with the capabilities of aut-ct, thus avoiding the cumbersome nature of proofs for hash lock-based sPKs.</summary> | ||
<published>2024-09-24T20:53:35.232000+00:00</published> | ||
</entry> | ||
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static/delvingbitcoin/Sept_2024/3264_Proving-UTXO-set-inclusion-in-zero-knowledge.xml
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<?xml version='1.0' encoding='UTF-8'?> | ||
<feed xmlns="http://www.w3.org/2005/Atom"> | ||
<id>1</id> | ||
<title>Proving UTXO set inclusion in zero-knowledge</title> | ||
<updated>2024-09-25T02:20:46.851571+00:00</updated> | ||
<author> | ||
<name>Adam Gibson 2024-09-24 20:57:13.321000+00:00</name> | ||
</author> | ||
<generator uri="https://lkiesow.github.io/python-feedgen" version="0.9.0">python-feedgen</generator> | ||
<entry> | ||
<id>1</id> | ||
<title>Proving UTXO set inclusion in zero-knowledge</title> | ||
<updated>2024-09-25T02:20:46.851604+00:00</updated> | ||
<link href="https://delvingbitcoin.org/t/proving-utxo-set-inclusion-in-zero-knowledge/1142/15" rel="alternate"/> | ||
<summary>The discussion revolves around the challenges and nuances of maintaining privacy within the context of Unspent Transaction Outputs (UTXOs) in a zero-knowledge setting, specifically in relation to the Lightning Network (LN). It highlights the inherent difficulty in tracking when channels close due to the private nature of transactions, which fundamentally differentiates it from non-private versions. This distinction underscores the complexity of ensuring both privacy and functionality in decentralized networks. | ||
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An interesting proposal is made to address this challenge: mandating the generation of proofs at regular intervals, optimistically considering a 24-hour update cycle. This approach suggests that participants could verify their transactions based on snapshots of UTXOs within this timeframe. Although this idea aims to mitigate the issue of untraceable channel closures, it is acknowledged that such a solution might be impractical for larger networks like the LN due to potential performance constraints. | ||
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Moreover, the conversation touches upon various subtleties involved in implementing such a system. These include the technical details and potential strategies to balance between privacy concerns and the operational demands of maintaining an up-to-date channel graph within the LN. The discussion implicitly invites further exploration of these finesses, hinting at the broader implications for network performance and the user experience in decentralized financial systems.</summary> | ||
<published>2024-09-24T20:57:13.321000+00:00</published> | ||
</entry> | ||
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static/delvingbitcoin/Sept_2024/3265_Lightning-Cheques.xml
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<?xml version='1.0' encoding='UTF-8'?> | ||
<feed xmlns="http://www.w3.org/2005/Atom"> | ||
<id>0</id> | ||
<title>Lightning Cheques</title> | ||
<updated>2024-09-25T02:22:11.912837+00:00</updated> | ||
<author> | ||
<name>andyschroder 2024-09-24 21:23:53.189000+00:00</name> | ||
</author> | ||
<generator uri="https://lkiesow.github.io/python-feedgen" version="0.9.0">python-feedgen</generator> | ||
<entry> | ||
<id>0</id> | ||
<title>Lightning Cheques</title> | ||
<updated>2024-09-25T02:22:11.912863+00:00</updated> | ||
<link href="https://delvingbitcoin.org/t/lightning-cheques/1162" rel="alternate"/> | ||
<summary>The concept of `Lightning Cheques` is introduced as an innovative paper-based payment method within the cryptocurrency domain, specifically tailored for offline transactions using the Lightning Network. These instruments combine a BOLT12 `invoice_request` on the front side with an `offer` on the back, facilitating a new way to conduct transactions without direct internet access. The process involves generating these requests in advance through software connected to a lightning node, which then encodes the data into QR codes. These codes contain URIs that denote the transaction details, allowing for easy printing and distribution. | ||
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The operational mechanism behind `Lighting Cheques` enables merchants to process payments by scanning the `invoice_request`, and subsequently issue change through the `offer` QR code. This system mirrors the tangible exchange of cash, offering various denominations to optimize transaction efficiency and minimize change-related risks. However, the model introduces a trust element, as users must rely on merchants to provide accurate change, akin to traditional cash transactions. A notable limitation is the delayed awareness of potential discrepancies until the payer reviews their account. | ||
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To address security concerns and enhance convenience, proposals include overprinting cheques for denomination flexibility, employing Faraday Bags for transport, and potentially integrating NFC technology for reusable formats. Additionally, the versatility of `Lightning Cheques` extends to gifting, educational expenses, travel safety, and providing a financial solution for individuals with limited access to mobile technology or those preferring physical transaction mediums. | ||
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For further details, refer to the original proposal on [delvingbitcoin.org](https://delvingbitcoin.org/t/privately-sending-payments-while-offline-with-bolt12/1134).</summary> | ||
<published>2024-09-24T21:23:53.189000+00:00</published> | ||
</entry> | ||
</feed> |
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