Ruben Somsen [ARCHIVE] on Nostr: 📅 Original date posted:2020-05-11 📝 Original message:Hi ZmnSCPxj, Thanks for ...

📅 Original date posted:2020-05-11
📝 Original message:Hi ZmnSCPxj,

Thanks for your feedback :)

>CoinSwap for privacy is practically a "cross" chain atomic swap with the same chain and token for both sides of the swap

I agree, I didn't mean to imply that was new, only that this protocol
makes it more efficient.

>"Instead, Bob simply hands secretBob to Alice" is basically the same as private key turnover

Thanks for the link. I will add it to the links at the bottom of the
write-up, as I agree it's related. Do note there are a few key
differences:

- The swap is set up in an "asymmetric" way with only timelocks on one
side, so on the other side the swap *never* expires
- The timelocks are set up in such a way that the swap does not expire
unless Alice starts the relative timelock countdown (the revoke
transaction)
- This relative timelock setup comes practically for free, because the
asymmetry naturally requires that kind of setup

>The "OR Alice in +1 day" branch can be implemented, at least on Bitcoin and similar blockchains, by signing a specific `nSequence`

"OR Alice in +1 day" is "refund transaction #1" from the diagram. If
I'm not mistaken, the change you are suggesting is exactly how "refund
transaction #2" is constructed. Note that #1 and #2 serve the same
purpose. Strictly speaking, #1 is not needed at all, but it's there to
give Alice the option to back out of the swap in two transactions as
opposed to three.

>It strikes me that the relative locktime is unnecessary on the output of this refund tx

I believe I addressed this in the FAQ section (the question about
absolute timelocks). An absolute timelock is possible, but you then
need to make absolutely sure that the revoke transaction confirms in
time, otherwise the protocol can fail (namely after Bob has received a
copy of the success transaction and just waits and does nothing). You
also lose the ability to keep the channel open indefinitely.

>having a variety of different versions of the transactions with different feerates could be used

That's a good point.

>As long as the one resolving a particular side of the swap is the one that ocmpletes the signature (which I believe holds true for all branches?)

Unfortunately this does not hold for the revoke transaction. It would
be a bit awkward if Alice had a high fee copy after the protocol
completes. She could send it to the blockchain and essentially Bob
would be paying for it. I'm not as concerned about the other
transactions, because those could all be bumped with CPFP if needed,
but having different feerates would be nice.

And a general comment about privacy: it seems inevitable that some
information will be leaked if the protocol does not complete
cooperatively. As long as the cooperative case is not traceable, that
seems about as good as it can get. That's my view, at least. I'd be
curious to hear if you see that differently.

Cheers,
Ruben



On Mon, May 11, 2020 at 6:45 PM ZmnSCPxj <ZmnSCPxj at protonmail.com> wrote:
>
> Good morning Ruben,
>
> CoinSwap for privacy is practically a "cross" chain atomic swap with the same chain and token for both sides of the swap, see also this set of ideas: https://github.com/AdamISZ/CoinSwapCS/issues/53
>
> "Instead, Bob simply hands secretBob to Alice" is basically the same as private key turnover, as best as I can understand it, and gives significant advantages, also described in passing here: https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2020-May/017816.html
>
> Overall, this looks very much like a working CoinSwap as well.
>
> The Refund tx does not need anything more than a 2-of-2 script.
> The "OR Alice in +1 day" branch can be implemented, at least on Bitcoin and similar blockchains, by signing a specific `nSequence`, or if the chain forking predates BIP68, by using absolute locktimes and signing a specific `nLockTime`, with the destination being just "Alice".
> This should help privacy, as now all `scriptPubKey`s will be 2-of-2 (or P2PKH with 2p-ECDSA).
>
> (It strikes me that the relative locktime is unnecessary on the output of this refund tx --- as long as both participants agree on either Alice or Bob having a longer locktime, you can just use the locktime on the refund tx directly as backout; see the topic "`nLockTime`-protected Backouts" on the CoinSwapCS issue link)
>
> If you are willing to accept protocol complexity, having a variety of different versions of the transactions with different feerates could be used rather than the Decker-Russell-Osuntokun "eltoo" bring-your-own-fees method.
> In terms of privacy this is better as you would not be using anything other than the most boring `SIGHASH_ALL` signing flag, whereas the Decker-Russell-Osuntokun will be identifiable onchain (and thus possibly flag the transaction as "of interest" to surveillors) due to use of `SIGHASH_ANYPREVOUT`.
> As long as the one resolving a particular side of the swap is the one that ocmpletes the signature (which I believe holds true for all branches?) then it would select the version of the transaction with the best feerate, which it effectively pays out to what it recovers.
>
>
> Regards,
> ZmnSCPxj
>
>
> > Works today with single signer ECDSA adaptor signatures[0], or with
> > Schnorr + MuSig.
> >
> > Diagram here:
> > https://gist.github.com/RubenSomsen/8853a66a64825716f51b409be528355f#file-succinctatomicswap-svg
> >
> > Advantages:
> >
> > - Requires merely two on-chain transactions for successful completion,
> > as opposed to four
> >
> > - Scriptless, and one of the chains doesn't need to support timelocks
> > - Can be used for efficient privacy swaps, e.g. Payswap[1]
> >
> > Disadvantages:
> >
> > - Access to money is contingent on remembering secrets (backup complexity)
> > - Online/watchtower requirement for the timelock supporting chain (not
> > needed with 3 tx protocol)
> >
> > Protocol steps:
> >
> > 0.) Alice & Bob pre-sign the following transactions, with exception of
> > the signatures in [brackets]:
> >
> > - success_tx (money to Bob): [sigSuccessAlice] + [sigSuccessBob]
> > - revoke_tx (timelock): sigRevokeAlice + sigRevokeBob, which must then
> > be spent by:
> > -- refund_tx (relative timelock, refund to Alice): [sigRefundAlice]
> >
> >
> > - {sigRefundBob}
> > -- timeout_tx (longer relative timelock, money to Bob):
> > sigTimeoutAlice + [sigTimeoutBob]
> >
> > {sigRefundBob} is an adaptor signature, which requires secretAlice to complete
> >
> > 1.) Alice proceeds to lock up 1 BTC with Bob, using keyAlice & keyBob as pubkeys
> >
> > If protocol is aborted after step 1:
> >
> >
> > - Alice publishes the revoke_tx, followed by the refund_tx &
> > sigRefundBob, to get her BTC back
> >
> > - If Alice neglects to publish the refund_tx in time, Bob will claim
> > the BTC with the timeout_tx
> >
> > 2.) Bob locks up altcoins with Alice, using secretAlice & secretBob as pubkeys
> >
> > If protocol is aborted after step 2:
> >
> > - Once Alice publishes sigRefundBob, Bob learns secretAlice and
> > regains control over the altcoins
> >
> > 3.) Protocol completion:
> >
> > - Alice hands adaptor signature {sigSuccessAlice} to Bob, which
> > requires secretBob to complete
> >
> > - Bob could now claim the BTC via the success_tx, reveal secretBob,
> > and thus give Alice control over the altcoins (= 3 tx protocol)
> >
> > - Instead, Bob simply hands secretBob to Alice
> > - Likewise, Alice hands keyAlice to Bob to forego her claim on the refund_tx
> > - Bob continues to monitor the chain, because he'll have to respond if
> > Alice ever publishes the revoke_tx
> >
> > More graceful protocol failure:
> >
> > If the protocol aborts after step 1, Alice would have been forced to
> > make three transactions in total, while Bob has made none. We can
> > reduce that to two by introducing a second refund_tx with timelock
> > that can be published ahead of the revoke_tx and directly spends from
> > the funding transaction. Publishing this transaction would also reveal
> > secretAlice to Bob via an adaptor signature. In the 3 tx protocol,
> > this output can go directly to Alice. In the 2 tx protocol with
> > online/watchtower requirement, this output needs a script: spendable
> > by Alice + Bob right away OR by Alice after a relative timelock. It is
> > important to note that this transaction must NOT be published during
> > step 3. Once Bob can complete the success_tx, the revoke_tx is needed
> > to invalidate the success_tx prior to revealing secretAlice.
> >
> > FAQ:
> >
> > - Why not allow Alice to still claim the altcoins if she accidentally
> > lets Bob publish the timeout_tx?
> >
> > Alice could send the revoke_tx at the same time, revealing both
> > secrets and causing likely losses. This can be solved by adding yet
> > another transaction, but it wouldn't be efficient and wouldn't
> > motivate Alice to behave.
> >
> > - Is it possible to implement this protocol on chains which only
> > support absolute timelocks?
> >
> > Yes, but then Bob must spend his swapped coins before the timelock
> > expires (or use the 3 tx protocol). Be aware that the revoke_tx MUST
> > confirm before the timeout_tx becomes valid, which may become a
> > problem if fees suddenly rise. The refund_tx can also not be allowed
> > to CPFP the timeout_tx, as they must confirm independently in order to
> > invalidate the success_tx first.
> >
> > - Can't Alice just publish the revoke_tx after protocol completion?
> >
> > Yes, she'd first have to move the altcoins (to invalidate
> > secretAlice), and could then try to claim the BTC by publishing the
> > revoke_tx, forcing Bob to react on-chain before the refund_tx becomes
> > valid. The eltoo[2] method of paying for fees (requires
> > sighash_anyprevout) or a second CPFP-able output may be an improvement
> > here (and also mitigates fee rising issues), but note that this also
> > increases the required amount of tx data if the protocol doesn't
> > complete successfully.
> >
> > - Can this be made to work with hash locks?
> >
> > Yes, by making the altcoins spendable via sigAlice + preimageBob OR
> > sigBob + preimageAlice, and ensuring the contracts on the BTC side
> > reveal either pre-image. Do note that this is not scriptless and will
> > thus increase the transaction size.
> >
> > Open question:
> >
> > Perhaps it's possible to perform an atomic swap in and out of
> > Lightning with only a single on-chain transaction. This would require
> > some kind of secondary set of HTLCs, allowing the sender to cancel a
> > Lightning payment by revealing a secret after a certain period of
> > time.
> >
> > -- Ruben Somsen
> >
> > Thanks to Lloyd Fournier for feedback and review.
> >
> > If you find any further errors, I will endeavor to fix them here:
> > https://gist.github.com/RubenSomsen/8853a66a64825716f51b409be528355f
> >
> > Related work:
> >
> > Tier Nolan Atomic Swap:
> > https://bitcointalk.org/index.php?topic=193281.msg2224949#msg2224949
> > Monero Atomic Swap:
> > https://github.com/h4sh3d/xmr-btc-atomic-swap/blob/master/README.md
> >
> > [0] https://lists.linuxfoundation.org/pipermail/lightning-dev/2019-November/002316.html
> >
> > [1] https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2020-January/017595.html
> >
> > [2] https://blockstream.com/eltoo.pdf
> >
> >
> > bitcoin-dev mailing list
> > bitcoin-dev at lists.linuxfoundation.org
> > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev
>
>