delvingbitcoin

BIP352: PSBT support

BIP352: PSBT support

Original Postby josibake

Posted on: June 21, 2024 13:15 UTC

The discussion emphasizes the inherent risk involved when party A signs a transaction using the ACP signature.

The consensus is clear that employing ACP for signing poses a significant security threat to A's funds, which could be either stolen or burned. This vulnerability stems from the fact that signing with ACP does not sufficiently protect A's interests within the transaction. On the other hand, party B's approach to signing transactions is markedly different and notably safer. B opts to sign with ALL, which ensures that regardless of how A signed the transaction (securely or insecurely with ACP), B's inputs remain safeguarded. In scenarios where A has used ACP, B's signing method with ALL acts as a fail-safe. It guarantees that either the transaction processes successfully without compromising B's inputs or B's inputs are excluded from the transaction altogether, thereby protecting B from potential losses.

This dynamic underscores a critical strategy in transaction signing practices: the choice of signature type directly influences the security of the involved parties' funds. While one party may inadvertently or mistakenly compromise their security by choosing an insecure signature type like ACP, the counterparty can still maintain the integrity of their contribution by opting for a more secure signing method. This distinction not only highlights the importance of understanding the implications of signature types on transaction security but also illustrates the mechanisms through which participants can safeguard their interests even when others in the transaction may not exercise the same level of caution.