New Post Quantum Bitcoin Proposal using WInternitz + Lamport auth chains

The discussion involves a detailed analysis of the current and projected transaction volumes in cryptographic networks, particularly focusing on the computational and storage burdens these entail. At an adoption rate reflecting 10% of today's typical transaction volume, which amounts to approximately 300,000 transactions per day, the annual data storage needed is calculated to be around 350 MB. However, this estimate appears to be significantly understated as the correct computation based on inputs per transaction (approximately 1.66 per transaction) brings the figure closer to 5.8 GB per year.

Furthermore, the system design mentioned involves a mechanism where each Lamport chain, committed at genesis, allows for detection of expended slots, indicating when pruning might be necessary. This setup suggests that only high-volume users would need their chains pruned once fully utilized, representing a minimal part of the total nullifiers. It’s pointed out that ZCash, using a similar approach since 2016, manages a growing set of nullifiers without operational issues, despite having much lower daily transaction volumes compared to Bitcoin.

Additionally, there's a technical note on security features related to transaction outputs in Bitcoin improvement proposals, specifically BIP361: P2MR. The output's spendability via a key path indicates standard Bitcoin privacy but raises questions about post-quantum (PQ) security. In scenarios demanding PQ-safety, users would face limitations in participating in multi-user transactions or adjusting fee rates using Schnorr signatures without WOTS signatures, which influences flexibility and security in transaction management. This information highlights ongoing challenges and developments in enhancing blockchain transaction efficiency and security.