š
Original date posted:2016-08-03
š Original message:In light of the recent hack: what does everyone think of the idea of
creating a new address type that has a reversal key and settlement layer
that can be used to revoke transactions?
You could specify so that transactions "sent" from these addresses must
receive N confirmations before they can't be revoked, after which the
transaction is "settled" and the coins become redeemable from their
destination output. A settlement phase would also mean that a transaction's
progress was publicly visible so transparent fraud prevention and auditing
would become possible by anyone.
The reason why I bring this up is existing OP codes and TX types don't seem
suitable for a secure clearing mechanism; Nlocktimed TXs won't work for
this since you can't know ahead of time when and where a withdrawal needs
to be made, plus there's still the potential for key mismanagement; Similar
problems with OP_CHECKLOCKTIMEVERIFY apply too ā unless you keep a private
key around on the server which would defeat the purpose. The main use case
here, would be specifically to improve centralized exchange security by
making it impossible for a hot wallet to be raided all at once.
Thoughts?
Some existing background:
http://hackingdistributed.com/2016/08/03/how-bitfinex-heist-could-have-been-avoided/
-- Proposed the basic idea for a time-based clearing house but using
blockchains directly, this is a much better idea than my own.
roberts.pm/timechain -- My original paper written in 2015 which proposed a
similar idea for secure wallet design but implemented using time-locked
ECDSA keys. Obviously a blockchain would work better for this.
Other -- if the idea has already been brought up by other people, I
apologize.
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Matthew Roberts [ARCHIVE] /
npub12fā¦k0jt6
2023-06-07 17:52:11
in reply to nevent1qā¦z5e3
Author Public Key
npub12ftsvulestm9ztkjkgkl7cfurm6u6dau835evhcs3jwxyctn4y6qsk0jt6Seen on
wss://relay.nostr.bandPublished at
2023-06-07 17:52:11Event JSON
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"content": "š
Original date posted:2016-08-03\nš Original message:In light of the recent hack: what does everyone think of the idea of\ncreating a new address type that has a reversal key and settlement layer\nthat can be used to revoke transactions?\n\nYou could specify so that transactions \"sent\" from these addresses must\nreceive N confirmations before they can't be revoked, after which the\ntransaction is \"settled\" and the coins become redeemable from their\ndestination output. A settlement phase would also mean that a transaction's\nprogress was publicly visible so transparent fraud prevention and auditing\nwould become possible by anyone.\n\nThe reason why I bring this up is existing OP codes and TX types don't seem\nsuitable for a secure clearing mechanism; Nlocktimed TXs won't work for\nthis since you can't know ahead of time when and where a withdrawal needs\nto be made, plus there's still the potential for key mismanagement; Similar\nproblems with OP_CHECKLOCKTIMEVERIFY apply too ā unless you keep a private\nkey around on the server which would defeat the purpose. The main use case\nhere, would be specifically to improve centralized exchange security by\nmaking it impossible for a hot wallet to be raided all at once.\n\nThoughts?\n\nSome existing background:\n\nhttp://hackingdistributed.com/2016/08/03/how-bitfinex-heist-could-have-been-avoided/\n-- Proposed the basic idea for a time-based clearing house but using\nblockchains directly, this is a much better idea than my own.\n\nroberts.pm/timechain -- My original paper written in 2015 which proposed a\nsimilar idea for secure wallet design but implemented using time-locked\nECDSA keys. Obviously a blockchain would work better for this.\n\nOther -- if the idea has already been brought up by other people, I\napologize.\n-------------- next part --------------\nAn HTML attachment was scrubbed...\nURL: \u003chttp://lists.linuxfoundation.org/pipermail/bitcoin-dev/attachments/20160804/fe4335fb/attachment.html\u003e",
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