SHRINCS: 324-byte stateful post-quantum signatures with static backups

The concept of utilizing a singular recovery key across multiple distinct shrincs keys presents an innovative approach to managing digital signatures and transactions. This method allows for the implementation of consensus rules that require only a signature from the recovery key for authorizing multiple inputs, akin to the process of cross-signature aggregation. Such a mechanism is designed to be used sparingly, primarily as a one-time operation to consolidate all outputs. The necessity for occasional use stems from concerns regarding privacy, as executing multiple sweeps simultaneously could potentially compromise user anonymity. However, the infrequency of such operations coupled with the simultaneous action taken by numerous users might mitigate privacy risks to an acceptable level.

There's an acknowledgment of the trade-off between convenience and privacy, highlighting that while the use of a recovery key simplifies the process of consolidating transactions or recovering access, it does so at the expense of reduced privacy. Despite this, the overall attractiveness of using the recovery option remains low due to its high costs and complexity, which serves as a natural deterrent against frequent or casual misuse. This balance ensures that the introduction of such a system would not inadvertently promote practices that could compromise user privacy on a broad scale.

In essence, this approach aims to streamline certain aspects of blockchain transaction management without significantly undermining privacy or security. By carefully calibrating the cost and usability of the recovery key function, it seeks to offer a pragmatic solution that addresses specific operational inefficiencies while maintaining a strong commitment to user confidentiality and data protection.