Good morning list,

We were not able to discuss this topic much at recent summit, but I noticed 
that lnd has some code related to watchtowers already.  From my bare knowledge 
of go, it seems data structures and messages so far, without actual logic, but 
please inform me if I am incorrect.

I assume much of the watchtowers code and design in lnd is by Conner, simply 
because, he discussed this on this list earlier this year.

I have seen recently, some paper about paying watchtowers by actually 
simulating breaches.  You would give a watchtower some txid+blob pair, then 
send that txid and see if the watchtower claims it.  If it does, then you have 
evidence of liveness and correct behavior, and have also paid for and 
incentivized the watchtower to operate correctly.

Note however that watchtowers would require to keep all encrypted blobs that 
are keyed to the same partial txid.  I.e. watchtowers need to store the pair in 
a set with the set looking at the entire txid+blob as the identity of the 
object.  Otherwise it would be possible, if your watchtower is identified by 
your counterparty, for the counterparty to give the commitment transaction's 
txid with a randomly-generated blob to your watchtower before it gives the 
revocation key to you.  However, this remains your counterparty best avenue of 
attack, is to simply spam your watchtower until it runs out of resources and 
crashes.

I have described the above problem before here: 
https://lists.linuxfoundation.org/pipermail/lightning-dev/2018-April/001203.html
 with an unsatisfactory solution.

--

I have also been thinking about watchtowers compatible with 
Decker-Russell-Osuntokun channels.

As I understand, in a separate thread, laolu is promoting that 
Decker-Russell-Osuntokun channels can simply "update" the blob side of a 
txid-blob entry, with the txid being the kickoff/trigger transaction.  As I 
point out, unless the watchtower identifies the user somehow, this is unsafe; 
if I can identify your watchtower, then after you update it but before I 
attack, I can "update" the blob side with a randomly-generated, invalid blob.  
And if the watchtower identifies the user, then this leaks the privacy of the 
user to the watchtower, and what would then be the point of encrypted blob? 
https://lists.linuxfoundation.org/pipermail/lightning-dev/2018-May/001264.html

I am curious what Conner and the other lnd developers are planning for these 
issues?  You seem to be the first movers into this, and I cannot read go well 
enough to decipher what plans you have.

Regards,
ZmnSCPxj
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