Original Postby orkunkilic

Posted on: February 20, 2024 12:12 UTC

The discussion revolves around the nuanced implications of potentially moving PSBTs (Partially Signed Bitcoin Transactions) from an off-chain to an on-chain framework, particularly in relation to Miner Extractable Value (MEV).

Currently, the resolution of MEV issues is managed off-chain due to the nature of PSBTs. The shift to an on-chain system could introduce new dynamics in how MEV is addressed, thereby necessitating a thorough examination of these potential changes.

Further contemplation is required on the comparative implications of using CSV (CheckSequenceVerify) versus CMTV (CheckMultiTimeVerify) within this context. The flexibility afforded by scripts that unlock at any given time offers users the autonomy to spend their assets as they wish. Conversely, introducing scripts that eventually become unspendable introduces a different set of considerations. Specifically, there might be an emergent incentive for miners to engage in censoring activities. This aspect underlines the need for a careful analysis of how such changes could affect transaction dynamics and the broader blockchain ecosystem.

This exploration underscores the complexities inherent in adjusting the operational parameters of blockchain transactions, especially concerning security, user autonomy, and the potential for unintended consequences such as increased censorship by miners. Each of these elements plays a critical role in maintaining the integrity and efficiency of blockchain networks, thus warranting a detailed investigation into the prospective impacts of migrating PSBTs to an on-chain reality.