Using 7 Bitcoin Methods Like The pros

Participants discussed their experience compiling and running the examples, using debuggers, comparing the example code with Bitcoin Core usage, and considering the UX for non-Bitcoin users. As the number of users sharing a UTXO increases, the number of presigned transactions that need to be created increases combinatorially, making the arrangement highly unscalable (just ten users requires presigning over a million transactions). Always paying the same address allows that address to be a normal derivable address in the client’s HD wallet, making it possible for the user to recover their funds even if they’ve lost all of their state besides their HD seed. ● Rescuing lost LN funding transactions: LN funding transactions are not safe in the presence of transaction malleability. ● How is network conflict avoided between chains? Ether (ETH), the cryptocurrency of the Ethereum network is the second most popular digital token after Bitcoin, and its currency is known as Ether, the second-largest cryptocurrency by market capitalization. Murch explains how nodes use magic numbers, as specified in the P2P message structure, in order to identify if they are connected to a peer that is on the same network (mainnet, testnet, signet).

For nodes with large numbers of channels, this limits their capital requirements. If they need to close more than 10 channels, they can use the funds received from closing one channel to close the next channel in a domino effect. If both peers set this flag, any commitment transactions they create which they’re able to spend unilaterally (e.g. to force close the channel) must pay their peer’s funds to a static address negotiated during the initial channel open. EVICT were added in a soft fork, each member of the group could share a public key with the other members along with a signature for that key over an output paying the member the expected amount (e.g. 1 BTC for Alice, 2 BTC for Bob, etc). Orlovsky’s proposal allows that hash to be added to a PSBT so that a signing wallet or hardware device can produce a valid signature. Can you follow the examples added in the PR?

Today, these four users can create a P2TR (taproot) output whose keypath spend allows them to use a protocol like MuSig2 to efficiently spend that output if they all participate in creating a signature. Murch explains that ECDSA signature grinding is the process of repeatedly signing until you get a signature whose r-value is in the lower half of the range, resulting in a signature that is 1 byte smaller (32 bytes vs 33 bytes) based on the serialization format Bitcoin uses for ECSDA. EVICT accomplishes the same but ZmnSCPxj suggests it could be a superior option to those opcodes (for this usecase) because it uses less onchain data when removing members of the shared UTXO ownership group. EVICT is focused on use cases where more than two users share ownership of a single UTXO, such as joinpools, channel factories, and certain covenants. Payments sent using the newer SendPaymentV2 RPC default to zero fees, essentially requiring users to specify a value. This is mainly meant for container-based setups where the passphrase is already stored in a file, so using that file directly doesn’t create any additional security problems. Using the taproot keypath spend, as described above.

● Is it possible to convert a taproot address into a v0 native segwit address? ● How many BIPs were adopted in the standard client in 2021? 5083 allows a PSBT to be read from a file rather than by reading the standard input (stdin) file descriptor. 5256 allows reading the wallet passphrase from a file. ● LND 0.14.2-beta is the release for a maintenance version that includes several bug fixes and a few minor improvements. This week’s newsletter describes a discussion about changing relay policy for replace-by-fee transactions and includes our regular sections with the summary of a Bitcoin Core PR Review Club meeting, announcements of new releases and release candidates, and descriptions of notable changes to popular Bitcoin infrastructure projects. Rusty Russell has opened a PR to the BOLT repository and started a mailing list thread for feedback on a proposal to modify the construction and signing of some of the LN transactions in order to allow both BIP125 Replace-by-Fee (RBF) fee bumping and Child-Pays-For-Parent (CPFP) fee bumping.

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