Posted by David A. Harding
Oct 23, 2023/08:49 UTC
In an email sent by Nadav Ivgi via bitcoin dev, the underlying problem of a replacement cycle is discussed. The description provided by Riard outlines a replacement cycle where Bob broadcasts an HTLC-timeout and Mallory replaces it with an HTLC-preimage. Mallory then replaces the transaction that created input C, removing the HTLC-preimage from the mempool.
However, an alternative approach is proposed where Bob broadcasts an HTLC-timeout and Mallory replaces it with an HTLC-preimage. In this case, Mallory uses input C to replace the HTLC-preimage with a transaction that does not include input A, thereby removing the preimage from the mempool.
The original scenario requires input C to be from an unconfirmed transaction, making the use of OP_CSV_ALLINPUTS effective. However, in the alternative scenario, input C can come from a confirmed transaction, rendering OP_CSV_ALLINPUTS ineffective.
The discussion highlights the difference between the two approaches and their effectiveness in handling the replacement cycle.
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