delvingbitcoin
Multi-Party Eltoo with bounded settlement
Posted on: January 7, 2025 01:07 UTC
The concept of "punishable Eltoo" in multi-party settings, previously explored by Lloyd Fournier and the author, relates to the development and implications of using a penalty mechanism within these systems.
The idea, while not identical, aligns with certain research interests, especially in how it might be applied within blockchain technologies to enhance security and trustlessness. Various resources have been shared to elaborate on these concepts, including discussions on using per-update credentials to enable an Eltoo-Penalty mechanism and the exploration of Witness Asymmetric Channels. These contributions are significant for anyone looking into advanced blockchain functionality, particularly in how they address the challenges of multi-party construction without relying on coordinators or quorums.
Further discussion delves into the intricacies of creating a purely trustless design in multi-party systems, highlighting the challenges such as high interactivity issues in payment pools and channel factories. This is critical for understanding the scalability and feasibility of such systems across a broader spectrum of applications. The conversation also touches upon the ambitious goal set forth in the CoinPool paper, which aims to accommodate a 1000-sized pool that could potentially serve the global population by allowing each individual to maintain their own pool balance under the assumptions made about the Bitcoin blockchain.
One of the key challenges identified in expanding the scope of multi-party channels involves the hard limitation imposed by the need to update channel states on-chain only once. This raises complex questions about assigning blame among non-trusted parties efficiently, a problem compounded by the exponential growth in the vector commitment as more parties participate in the off-chain construction. These discussions are pivotal for advancing blockchain technology, offering insights into potential solutions and areas requiring further research. The provided links offer valuable resources for those interested in exploring these topics in greater depth:
- Using Per-Update Credential to enable Eltoo-Penalty
- Witness Asymmetric Channel
- Conjectures on solving the high interactivity issue in payment pools and channel factories
- A Dive into CoinPool: Bitcoin Balances for Billions.
These materials collectively underscore the importance of addressing both theoretical and practical challenges in designing scalable, secure, and trustless multi-party systems within the blockchain ecosystem.