ZK-gossip for lightning channel announcements

The discussion revolves around the evaluation of using hashing for the full UTXO set within a node, which interestingly only took about one and a half minutes even when utilizing a network-fed filesystem, largely benefiting from memory hits. This process, deemed manageable if conducted every six hours, would further be streamlined by limiting the scope to specific subsets of the UTXO set, such as taproot-only transactions or outputs exceeding a certain value. The conversation shifts to critique the efficiency of implementing log-scaled ring signatures for transaction anonymity. It highlights the linear relationship between verification time and set size as a significant drawback, undermining the practicality of achieving substantial anonymous sets without incurring excessive verification delays.

Further, the dialogue touches upon the historical context of seeking a viable proof scheme for enhancing transaction privacy and efficiency. Despite the initial optimism and theoretical support for such advancements, the reality reveals a lack of suitable, mature proof systems available for implementation. The crux of the issue lies in the necessity for any adopted solution to be robust and widely acceptable across lightning nodes, with a preference for simplicity to encourage multiple implementations. Past endeavors to find an appropriate solution were hindered by the generally mediocre quality of existing ZK (Zero-Knowledge) proofs implementations and their impracticality for specific optimization needs, such as avoiding unnecessary verifications for certain cryptographic operations.

Moreover, there's an acknowledgment of potential improvements in the availability and quality of ZK proofs since the last examination three years prior. However, any new approach must overcome the previous barriers of implementation complexity and broad acceptability among lightning nodes. The overarching sentiment suggests a cautious optimism towards revisiting these technologies, balanced by an awareness of the challenges that have historically impeded progress in this area.